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7. Describe the conterts in which Activity Based Costing may be most useful. How can Actvity Based Costing help in service industres? Give three examples

7. Describe the conterts in which Activity Based Costing may be most useful. How
can Actvity Based Costing help in service industres? Give three examples of

such service industries and explain how ABC helps with decision making.

Examiners value the use of your own words. The word limit for your

answer is 800 words.

(15 marks)

management accounting

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