The steps of an activity-based costing for a service firm are significantly different from that used for a manufacturing firm.

Question

Quizplus · Accepted Answer

The steps of activity-based costing (ABC) are generally similar for both service and manufacturing firms, involving identifying activities, assigning costs to activities, and allocating costs to products or services based on their use of activities. The main difference lies in the specific activities and cost drivers used.

The Steps of an Activity-Based Costing for a Service Firm