How can activity-based costing be used in service companies


Questions:

1. Shipping, selling, marketing, sales order processing, return processing, and advertising activities can be related to products by using activity-based costing. Would allocating these activities to products for financial statement reporting be acceptable according to GAAP?

2. How can activity-based costing be used in service companies?

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Accounting Basics: How can activity-based costing be used in service companies
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