Service industry firms can make effective use of ABC systems as
Service-industry firms 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. Delta Airlines
2. Kentucky Fried Chicken
3. Island Health & Fitness Club
4. Bank of America branch bank
5. Sheraton Hotel
6. Cook County Hospital

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