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

question 41

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 realized.

---

Definitions:

Case-Based Learning

An educational approach that uses real-life scenarios to develop problem-solving skills and integrate theory with practice.

Complex Problems

Issues or challenges that are multifaceted, have multiple causes, and require comprehensive and flexible strategies for resolution.

Decision Making

The cognitive process of selecting a course of action among several alternatives, often involving considerations of risk, benefits, ethics, and personal values.

Institutional Practice Guidelines

Standardized recommendations developed by healthcare organizations to direct clinical practice and ensure quality care.