Which of the Following Is a Limitation of Activity-Based Costing

question 110

Multiple Choice

Which of the following is a limitation of activity-based costing?

• A) More cost pools
• B) Less control over overhead costs
• C) Poorer management decisions
• D) Some arbitrary allocations continue

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Definitions:

Competence

The ability of an individual to do a job properly, encompassing knowledge, skills, and experience.

Intrinsic Motivation

A type of motivation driven by an interest or enjoyment in the task itself, rather than external pressures or rewards.

Social Reinforcement

The process of encouraging or strengthening a particular behavior through positive feedback or rewards from others.

Sense of Purpose

The feeling of meaning and direction in one's life or activities.