Large service organisations such as banks and hospitals used to be noted for their lack of standard costing systems and their relatively unsophisticated budgeting and control systems compared with large manufacturing organisations. But this is changing and many large service organisations are now revising their use of management accounting techniques.

$($a$)$ Explain which features of large$-$scale service organisations encourage the use of the application of activity$-$based approaches to the analysis of cost information $(6$ Marks$).$

$($b$)$ Explain which features of service organisations may create problems for the application of activity$-$based costing $(4$ Marks$).$

$($c$)$ Identify four $(4)$ uses of activity$-$based cost information in service industries $(4$ Marks$).$

$($d$)$ Many large service organisations were at one time state$-$owned but have been privatised. Examples in many countries include telecommunications and electricity supply. Such organisations are often regulated. Explain which aspects of cost information and systems in service organisations would particularly interest a regulator, and why these features would be of interest