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

question 11

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:

Recruitment

The process of finding, attracting, and selecting candidates for employment to fill job vacancies within an organization.

Opportunity Cost

The cost of the next best alternative that is foregone when a decision is made.

Executive

A senior-level administrator or manager in an organization who is responsible for making significant decisions and ensuring the organization's strategies are implemented.

High School

An educational institution typically offering secondary education for students aged between 13 and 18, preparing them for college, university, or vocational training.