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:

The Trustee

An individual or organization appointed to administer the assets of a trust for the benefit of the beneficiaries according to the terms of the trust document.

Automatic Stay

A provision in bankruptcy law that temporarily stops lawsuits, foreclosures, garnishments, and all collection activity against the Debtor the moment a bankruptcy petition is filed.

Creditor Litigation

Legal proceedings initiated by a creditor to collect debts owed by a debtor who has failed to make payments.

Chapter 7 Bankruptcy

A chapter of the Bankruptcy Code that provides for the liquidation of a debtor's non-exempt assets to pay off creditors.