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.

Recognize the importance of the five-question sequence method in overcoming objections.

Appreciate the significance of asking for the order even when facing objections.

Identify different types of objections including reseller and source objections.

Apply various techniques such as dodge, price/value formula, and boomerang in handling objections.