For service organisations that bill customers at a predetermined average rate,activity-based cost systems can help to:
A)identify the profitability of various service activities.
B)clarify appropriate cost assignments for various service activities.
C)Both A and B are correct.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

Activity-based cost systems can help service organisations to identify the profitability of various service activities and clarify appropriate cost assignments for those activities. Therefore, both options A and B are correct.

For Service Organisations That Bill Customers at a Predetermined Average