Activity-based management is not suitable for service companies as it deals with the proper allocation of manufacturing overhead costs.

Name: Activity-based management is not suitable for service companies as it deals with the proper allocation of manufacturing overhead costs.
Brand: Quizplus
Rating: 4.7 (29 reviews)

Question

Quizplus · Accepted Answer

Activity-based management can be applied to service companies as well. It helps in identifying and allocating costs of various activities involved in providing services, which can lead to better cost control and decision making.

Activity-Based Management Is Not Suitable for Service Companies as It