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

question 24

Multiple Choice

Each of the following is a limitation of activity-based costing except that

• A) it can be expensive to use.
• B) it is more complex than traditional costing.
• C) more cost pools are used.
• D) some arbitrary allocations continue.

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Definitions:

Organizational Cultures

The shared values, beliefs, traditions, and practices that influence the way members of an organization interact with each other and approach their work.

Collective

A group or assembly of individuals that share common interests or goals, often working together towards a mutual objective.

Emotionally Charged

Referring to situations or topics that evoke strong feelings or emotional responses.

Organization

A structured group of people with a common goal, such as a business, government department, or charity.