Which of the Following Is False Regarding Activity-Based Costing (ABC)

question 54

Multiple Choice

Which of the following is false regarding activity-based costing (ABC) ?

• A) Companies that have a high potential for cost distortions are more likely to benefit with ABC.
• B) Opportunities for continuous improvement are rarely revealed by using ABC.
• C) The cost of implementing ABC may outweigh the benefits.
• D) Increased accuracy with budgeting resources is often realised.

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Definitions:

Career Portfolio

A comprehensive collection of documents and materials that showcase an individual's skills, accomplishments, experiences, and qualifications for professional opportunities.

Career Environment

The physical and social setting in which individuals pursue their careers, encompassing organizational culture and opportunities for growth.

Strategic Competitiveness

Achieving a favorable position in the market by implementing unique strategies that leverage the organization's strengths in response to external opportunities and threats.

Continuous Innovation

An ongoing process of developing new or improved products, services, or processes that provide significant advances or competitive advantages.