Compared to manufacturing firms,cost allocation in service firms:
A) always requires greater sophistication in order to make work.
B) usually places a greater emphasis on direct labour costs.
C) emphasises direct material costs.
D) only requires the consideration of overhead costs.

Question

Quizplus · Accepted Answer

Service firms typically emphasize direct labor costs more than direct material costs, as labor is often the primary cost driver in service industries.

Compared to Manufacturing Firms,cost Allocation in Service Firms