Which of the Following Statements Regarding the Service Industry And/or

question 65

Multiple Choice

Which of the following statements regarding the service industry and/or the application of management accounting techniques to the service industry is incorrect?

• A) Many of the techniques used in manufacturing firms can be adapted to suit service industries.
• B) Resources used in all service firms are predominantly variable.
• C) Direct materials are frequently a comparatively small part of the total cost.
• D) Activity-based costing is not applicable to service industries.

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Definitions:

Medical Assistant

A healthcare professional who supports the work of physicians and other health professionals, usually in a clinic setting.

Discussing a Bill

The act of debating, scrutinizing, or deliberating over a proposed law or legislation within a governing body before it is passed or rejected.

Collection Agency

An enterprise engaged in collecting payments from individuals or businesses for outstanding debts.

Negotiate

The process of discussing something to reach an agreement or compromise between parties, typically aiming for a beneficial outcome for all involved.