How implementing activity based costing in a service entity

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Question 1 : Implementing Activity Based Costing in a service entity is more complex because:

I. Service businesses have a low proportion of overhead in their total costs

II. Service businesses tend to have a higher level of facility costs than most manufacturers

III. It is often difficult to identify service activities because they are non-repetitive

Select one:

Option 1: II only

Option 2: I only

Option 3: II and III

Option 4: I, II and III

Reference no: EM132560583

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