The Major Disadvantage of the Account Classification Method Is

question 57

Multiple Choice

The major disadvantage of the account classification method is

• A) While some cost items will exactly correspond to a fixed or variable cost, other cost items will not.
• B) The difficulty associated with implementing it.
• C) Small companies may have an expansive account list making the task hard.
• D) Incorrectly classifying costs could lead to minor errors in cost estimates.

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Definitions:

Functional Explanation

An approach in social sciences that explains social institutions and structures by the role they play in maintaining the stability and functionality of a society.

Social Positions

The places or roles that individuals occupy within the social structure, which influence their behavior, perspectives, and interactions with others.

Structural Inequality

Systemic disparities in access to resources, opportunities, and rights, often based on social categorizations such as race, gender, or class.

Fully Functional

Describes a system, machine, or organism operating at maximum capacity with all parts in working order.