Which of the following items might cause activity-based costing (ABC)to be more difficult to implement in a service company than in a manufacturing company?
A) The lack of direct labour
B) The lack of facility-level costs
C) The lack of repetitive activities
D) The lack of overhead costs

Question

Quizplus · Accepted Answer

Service companies often have a wide variety of non-repetitive activities, making it more challenging to identify and allocate costs accurately in an ABC system compared to manufacturing companies, where activities are more likely to be repetitive and easier to measure.

Which of the Following Items Might Cause Activity-Based Costing (ABC)to