What Is the Biggest Disadvantage of ABC

question 50

Multiple Choice

What is the biggest disadvantage of ABC?

• A) It does not provide costing information needed for GAAP purposes.
• B) It causes management to make frivolous decisions.
• C) It often causes managers to argue about the best activity measure.
• D) It is expensive.

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Definitions:

Professional Assistance

Expert support or guidance provided to help individuals or businesses achieve specific goals.

Inflexibility

The lack of adaptability or inability to change in response to new information or changing circumstances.

Shopping Center

A complex or area that houses multiple retail stores, restaurants, and other service outlets.

Stand-Alone Location

A business that is located in its own separate premises, rather than within a shared space or complex.