Activity-Based Costing
Service-industry firm s can make effective use of ABC systems as well as manufacturers. For each of the following businesses, list five key activities that are important in the provision of the firm’s service. For each activity cost pool. Suggest an appropriate cost driver to use in assigning costs from the activity cost pool to the services provided to customers.
1. Southwest airlines
2. Bureer King
3. Island Health & Fitness Club
4. Bank of America branch bank
5. Marrior Hotels
6. Massachusers General Hospital
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