Service organizations can use activity-based costing to allocate selling and administrative costs to services provided.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) can be applied in service organizations to allocate selling and administrative costs more accurately to the services provided, by identifying the activities that incur costs and tracing these costs to products or services based on their consumption of those activities.

Service Organizations Can Use Activity-Based Costing to Allocate Selling and Administrative