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:

Conservation

Conservation is a cognitive ability to understand that quantities or properties remain consistent even when their form or appearance changes.

Intuitive Thought

A type of thinking that relies on instinctive processes rather than analytical reasoning.

Centration

A cognitive limitation in early child development, identified by Piaget, where the child focuses on one aspect of a situation, overlooking other relevant aspects.

Basic Cognitive Processes

Processes such as perception, memory, language, problem-solving, and abstract thinking that underlie all human behaviors and learning.