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:

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Increased Blood Fats

Elevated levels of lipids in the bloodstream, such as cholesterol and triglycerides, which can contribute to cardiovascular diseases.

Resting Heart Rate

The number of heartbeats per minute when an individual is at rest, indicating cardiovascular fitness level.

Improved Mood

The state of having better emotional feelings, often as a result of physical activity, healthy eating, or other wellness strategies.