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.

Question

Quizplus · Accepted Answer

Service and not-for-profit organizations have different operational characteristics compared to manufacturing firms, such as non-tangible outputs and fewer direct costs, making it difficult to implement ABC systems in the same way as manufacturing firms. Therefore, they do not have ABC systems which are similar to those of manufacturing firms.

Service and Not-For-Profit Organizations Often