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

question 164

Multiple Choice

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

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

---

Definitions:

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins among others.

Thermoacidophiles

Microorganisms that thrive in extremely hot and acidic environments, often found in geothermal areas.

Halophiles

Microorganisms that thrive in environments with high salt concentrations, often found in places like salt lakes or the Dead Sea.

Methanogens

Microorganisms that produce methane as a byproduct of their metabolism, usually found in anaerobic environments.