Which of the following would not be an appropriate activity base for cost analysis in a service firm?
A)lawns mowed
B)inventory produced
C)customers served
D)haircuts given

Name: Which of the following would not be an appropriate activity base for cost analysis in a service firm? A)lawns mowed B)inventory produced C)customers served D)haircuts given
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Question

Quizplus · Accepted Answer

Inventory produced is not an appropriate activity base for a service firm because service firms typically do not produce inventory; they provide services.

Which of the Following Would Not Be an Appropriate Activity