Which of the Following Is Not a Limitation of Activity-Based

question 25

Multiple Choice

Which of the following is not a limitation of activity-based costing?

• A) More accurate product costs may result in better decisions.
• B) Changing from a traditional direct labour based costing system to an activity-based costing system changes product margins and other key performance indicators used by managers.
• C) Implementing an activity based costing system is more costly than implementing a traditional direct labour-based costing system.
• D) In practice,most managers insist on fully allocating all costs to products,customers,and other costing objects in an activity based costing system.This results in overstated costs.

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Definitions:

Liraglutide

A medication used in the treatment of type 2 diabetes and obesity, which mimics an intestinal hormone that lowers blood sugar.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification of officially recognized psychiatric disorders, published by the American Psychiatric Association.

Other Specified Feeding Or Eating Disorder

Presentations of an eating disorder that cause clinically significant distress or impairment but do not meet the full diagnostic criteria for any of the eating disorders otherwise identified.

Diagnosable Psychiatric Disorder

A mental disorder that meets standardized criteria set forth in diagnostic manuals such as the DSM or ICD, making it officially recognizable by professionals.