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

question 35

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:

Internal Factors

Elements within an organization that can influence its operations such as culture, values, and internal relationships.

Worth Of A Job

The perceived value or importance of a job, often evaluated in terms of its contribution to organizational goals, societal needs, or personal fulfillment.

Employer's Ability To Pay

An assessment of an employer's financial capability to meet salary demands and provide benefits to its employees.

Job Ranking

A method of evaluating jobs relative to each other within an organization based on their overall importance or complexity.