• Large service organizations 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 to the practice in large manufacturing organizations. But this is changing any many large service organizations are now reversing their use of management accounting techniques. Required: a) Explain which features of large service organizations encourage the application of activity-based approaches to the analysis of cost information. b) Explain which features of service organizations may create problems for the application of activity-based costing. c) Explain the uses of activity-based cost information in service industries. marks)