Asked by Ja’Na Speller on Jul 13, 2024

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Which of the following is not a reason for banks to use activity-based costing?

A) to determine the amounts charged to customers for services provided
B) to determine service quality
C) to determine profitability of services provided
D) all of these choices

Activity-based Costing

A costing methodology that assigns costs to products or services based on the activities that go into making them, aiming to provide more accurate product costs.

Service Quality

The evaluation of how well a delivered service matches the customer's expectations, often a key factor in customer satisfaction and loyalty.

  • Understand the concept and advantages of using activity-based costing for the allocation of factory overhead costs.
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Verified Answer

AF
Aidil FitriJul 16, 2024
Final Answer :
B
Explanation :
Activity-based costing is used by banks primarily for financial purposes such as determining the cost and profitability of services provided and the amounts charged to customers, not directly for assessing service quality.