All of the Following Are Disadvantages of Activity-Based Costing (ABC)except

question 8

Multiple Choice

All of the following are disadvantages of activity-based costing (ABC) except:

• A)ABC systems are expensive.
• B)ABC systems provide inaccurate product cost data.
• C)Companies with one or two products may see little benefit from an ABC system.
• D)Unit fixed costs can be misleading.
• E)None of the answer choices is correct.

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Definitions:

Syncope

A temporary loss of consciousness usually related to insufficient blood flow to the brain, commonly known as fainting.

Neurosecretions

Biochemical substances produced and released by neurons that influence the activity of other cells or a target organ.

Hypothalamus

A region of the brain below the thalamus; it directs several important bodily functions like temperature regulation and hunger.

Motor Area

A region of the brain involved in the planning, control, and execution of voluntary movements, primarily located in the precentral gyrus of the frontal lobe.