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

question 82

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) Service output is much more difficult to define than manufacturing output.
• B) Many of the activity measures chosen for service firms tend to be different from those chosen by manufacturing firms.
• C) Firms in the service industry should use process costing systems rather than job costing systems.
• D) Many service firms use a hybrid costing system.

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Definitions:

Administrative Errors

Mistakes or oversights that occur in the management, organization, or processing of information within an institution or business.

Caffeine

A stimulant found in various plants, commonly used to improve mental alertness and often found in coffee, tea, and soft drinks.

General Motors

An American multinational corporation specializing in automotive design, manufacturing, marketing, and distribution.

Louis Chevrolet

A Swiss-American race car driver and the co-founder of the Chevrolet Motor Car Company, a major automotive brand.