Which of the Following Items Might Cause Activity-Based Costing (ABC)

question 52

Multiple Choice

Which of the following items might cause activity-based costing (ABC) to be more difficult to implement in a service company than in a manufacturing company?

• A) The lack of direct labor.
• B) The lack of facility-level costs.
• C) The lack of repetitive activities.
• D) The lack of overhead costs.

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Definitions:

MROUND

A function in Excel that rounds a number to the nearest multiple of a specified value.

Nearest

The closest in distance, time, or relationship among options or elements being considered.

MINUTE

A unit of time equal to sixty seconds or one-sixtieth of an hour, also a function in many applications to extract the minute portion from a time value.

Automatic Calculation

A feature in software that allows for the automatic computation of results based on input values, eliminating manual calculation errors.