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:

Pollution Emission

The release of pollutants into the environment, often as a byproduct of industrial processes or vehicle operation.

Pollution Reduction

The process or policies aimed at decreasing the amount of pollutants released into the environment to improve environmental health and quality.

Pollution Permits

are allowances given to companies that limit the amount of pollution they are authorized to emit, which can be bought, sold, or traded, hence providing an economic incentive to reduce pollution.

Marginal Benefits

The additional satisfaction or utility a consumer receives from consuming an additional unit of a good or service.