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Which of the following statements is true regarding service businesses? many service companies use activity-based costing for determining the cost of services activity-based costing does

Which of the following statements is true regarding service businesses?

many service companies use activity-based costing for determining the cost of services

activity-based costing does not apply to service businesses

assigning overhead costs is not an issue in service businesses

the use of single and multiple department overhead rate methods may lead to distortions similar to those of manufacturing firms

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