Which of the following is true regarding the first stage in assigning overhead costs in an activity–based costing system?
a. The first stage is not important for service companies, as the activities tend to be similar to those of manufacturing companies.
b. The first stage is relatively complicated for service companies, as they have fewer activities and more cost drivers.
c. The first stage is relatively complicated for service companies, as the type of work done by them tends to be nonrepetitive.
d. The first stage does not apply to service companies, as the type of work done by them tends to be nonrepetitive.
c
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