Discussion Question (DQ):
Explain how activity-based costing differs from the full costing method. How can activity-based costing be applied to the service sector when the ‘activities’ that it seeks to analyse tend to be related to manufacturing?
A typical answer should have about 500 words, but it is the quality of the answer that matters, not the number of words. Satisfactory answers will demonstrate clear understanding of the topics and issues related to the DQ. Good answers will be able to explain the reasons in more depth. Excellent answers will be able to raise appropriate critical questions. Weak answers will demonstrate only a partial grasp of what is important in the context of the DQ.