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:

Enthymeme

A rhetorical argument that leaves out a premise or conclusion, assuming it to be implicitly understood by the audience.

Existential Import

The implication that some statement or proposition necessarily involves the existence of certain entities.

Standard Form

A conventional, widely accepted manner of presenting an argument or expression, often in logic and mathematics.

Venn Diagram

A graphical representation of mathematical or logical sets pictorially as circles or closed curves within an enclosing rectangle (the universal set).