All of the following statements are correct EXCEPT:___________.
1. the objective of installing ABC in service firms is different than it is in a manufacturing firm
2. activity-based costing has been widely adopted in service industries
3. a larger proportion of overhead costs are company-wide costs in service industries
4. the general approach to identifying activities and activity cost pools is the same in a service company as in a manufacturing company

Question

josiesolomonn415 josiesolomonn415

06-05-2020
Business

contestada

All of the following statements are correct EXCEPT:___________.
1. the objective of installing ABC in service firms is different than it is in a manufacturing firm
2. activity-based costing has been widely adopted in service industries
3. a larger proportion of overhead costs are company-wide costs in service industries
4. the general approach to identifying activities and activity cost pools is the same in a service company as in a manufacturing company

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topeadeniran2 topeadeniran2 · Answer 1 · 2020-05-07T03:13:36+02:00

Answer:

the objective of installing ABC in service firms is different than it is in a manufacturing firm

Explanation:

When overhead is assigned properly in ABC, it will reduce the unit cost of the high-volume products.

The objective of installing ABC in service firms is not different from the objective of instslling it in a manufacturing company. The main objective is that inventory storage costs are lowered in just-in-time processing. ABC leads to enhanced control over the overhead costs