Which of the following statements about activity-based costing (ABC) in service industries is incorrect?
a. The overall objective of ABC in service firms is no different than it is in a manufacturing company.
b. The classification of activities into unit-level, batch-level, product-level, and facility-level activities also applies to service industries.
c. The general approach to identifying activities, activity cost pools, and cost drivers is the same for service companies and for manufacturers.
d. ABC is usually easier to implement in a service industry because there is a smaller proportion of overhead costs that are company-wide costs.
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