abc works best in service industries ________. that have a significant amount of manufacturing overhead when…
abc works best in service industries ________. that have a significant amount of manufacturing overhead when every customer places similar demands on the company resources when different customers require different levels of services
Answer
Brief Explanations:
Activity - Based Costing (ABC) is useful when costs vary based on customer - specific activities. When different customers require different levels of services, ABC can accurately allocate costs based on the activities related to serving each customer type. In contrast, if customers have similar demands, simpler costing methods may suffice, and service industries typically don't have significant manufacturing overhead.
Answer:
when different customers require different levels of services