What sometimes makes implementation of activity-based costing difficult in service industries is
A) the labeling of activities as value-added.
B) identifying activities, activity cost plus, and cost drivers.
C) that a larger proportion of overhead costs are company-wide costs.
D) attempting to reduce or eliminate non-value-added activities.

Question

Quizplus · Accepted Answer

Service industries often have company-wide costs that are not directly related to specific activities, making it difficult to allocate those costs to individual activities. This can make implementation of activity-based costing challenging.

What Sometimes Makes Implementation of Activity-Based Costing Difficult in Service