Service and not-for-profit organizations often:
A)Have ABC systems which are similar to those of manufacturing firms.
B)Do not have changeable outputs.
C)Are unable to benefit from ABC costing.
D)Do not have ABC systems which are similar to those of manufacturing firms.
E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

Service and not-for-profit organizations are different from manufacturing firms in terms of their outputs, which are often intangible, non-changeable, or difficult to measure. Therefore, their ABC systems are not similar to those of manufacturing firms. However, they can still benefit from activity-based costing by identifying indirect costs and improving their cost efficiency.

Service and Not-For-Profit Organizations Often