Which of the Following Is Not a Benefit of Activity-Based

question 37

Multiple Choice

Which of the following is not a benefit of activity-based costing (ABC) ?

• A) Increased product cost information
• B) Increased accuracy in the budgeting process
• C) Increased implementation costs
• D) Increased understanding of activities that drive overhead costs

---

Definitions:

Gain or Loss

The financial result from selling an asset for more (gain) or less (loss) than its carrying amount on the books.

Disposal

The process of getting rid of an asset, including selling, scrapping, or another method of removal from the company's possession.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life up to a specific date.

Residual Value

The projected worth of a tangible asset upon reaching the conclusion of its operational lifespan.