Of the following organizations, activity-based costing (ABC) cannot be used by:
A)manufacturers.
B)ﬁnancial-services ﬁrms.
C)book publishers.
D)hotels.
E)None of these are correct, as all these organizations can use ABC.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) can be used by all the given organizations. It is a method of allocating indirect costs to products and services based on the activities they require, rather than on the volume of output. This makes it suitable for any organization that incurs indirect costs, regardless of its nature or industry.

Of the Following Organizations, Activity-Based Costing (ABC) Cannot Be Used