Characteristics Of Service Companies


1. Better decisions can come from a well-designed activity-based cost system because ABC information

  1. Emphasize how managers can achieve higher sales.
  2. Is easy to analyze and interpret.
  3. Can be used to eliminate non-value-added activities.
  4. Takes the choices and judgment challenges away from the managers.


2. Which of the following is characteristic of service companies?

  1. They have less variation in demand for organizational resources.
  2. They focus more on customer costs and profitability than manufacturing companies.
  3. They are less customer-driven than manufacturing companies.
  4. They are generally have more complex operations that require more organization resources.



The multiple questions belong to Finance. The 1st question discusses about well designed activity based cost system can help in taking better decisions and the 2nd question is about characteristic of service companies.

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