Activity-based costing is not appropriate for service providers since they do not have manufacturing overhead that needs to be assigned to products.Although service providers do not have manufacturing overhead,they incur many indirect costs,such as rent,supplies,supervision,advertising,and administrative expenses.ABC can be used to assign these costs to different services and customers.
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Q2: The first step in ABC is to
Q3: The only difference between a volume-based cost
Q4: In target costing,the target cost should be
Q5: A volume-based allocation measure is directly related
Q6: To compute an activity rate,divide the total
Q7: Life cycle cost management involves analyzing the
Q8: Internal failure costs result from defects that
Q9: When forming activity cost pools,the goal is
Q10: A just-in-time (JIT)system is a demand-push system.JIT
Q11: To assign activity costs using the activity
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