Consider the Following Statements

question 40

Multiple Choice

Consider the following statements. Activity-based costing is more difficult in a service business because:
i. service businesses have a low proportion of overhead in their total costs.
ii. service businesses tend to have a higher level of facility costs than most manufacturers.
iii. it is often difficult to identify service activities because they are non-repetitive.
Which of the above statements is true?

• A) i
• B) ii
• C) ii and iii
• D) i, ii and iii

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Definitions:

Entrepreneurial Culture

An organizational environment that fosters innovation, risk-taking, and proactivity in pursuing new business opportunities.

Market Culture

A set of shared attitudes, values, goals, and practices that characterizes an institution or organization focused on competitiveness and achievement.

Cultural Change

The transformation of the culture of a group or society, which may occur naturally through external influences or through deliberate efforts.

Organizational Culture

Pertains to the collective ideals, convictions, and standards that affect employees' perceptions, emotions, and actions in a workplace setting.