Which of the Following Would Be a Likely Disadvantage of Activity-Based

question 25

Multiple Choice

Which of the following would be a likely disadvantage of activity-based costing (ABC) ?

• A) A decrease in a company's ability to accurately prepare budgets for the upcoming period.
• B) A decrease in a company's ability to find opportunities for continuous improvement.
• C) An increase in the accuracy of product cost information.
• D) An increase in the cost of obtaining accurate product cost information.

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Definitions:

Networking

The act of interacting with others to exchange information and develop professional or social contacts.

Researching

The systematic investigation into and study of materials, sources, etc., in order to establish facts and reach new conclusions.

New Project

An initiative or plan that is embarked upon for the first time, aiming to achieve specific goals or outcomes.

Six Levels

A framework or concept that categorizes certain aspects or variables into six distinct layers or stages, often used in organizational, psychological, or developmental contexts.