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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
If a proposed capital project has an internal rate of return of 10% with a hurdle rate of 11%, what course of action is recommended?
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