In service companies,activity-based management ________.
A)results in more accurate cost per service information
B)follows different steps than in a manufacturing environment
C)is used to estimate total direct costs
D)uses one predetermined overhead allocation rate for all service activities

Question

Quizplus · Accepted Answer

Activity-based management in service companies results in more accurate cost per service information by identifying and assigning costs to specific activities that drive service costs. This allows for a more precise understanding of the cost of each service provided, leading to better decision-making and cost control.

In Service Companies,activity-Based Management ________