Which of the following is not a disadvantage of a full-fledged activity-based costing system?
A)Implementing a full-fledged ABC system is often very costly.
B)Implementing a full-fledged ABC system is time consuming.
C)The assignment of controllable costs of capacity resources is not as reliable using ABC as with traditional systems.
D)None of the above is a disadvantage of ABC.
E)All of the above are disadvantages of ABC.

Question

Quizplus · Accepted Answer

The assignment of controllable costs of capacity resources is actually more accurate and reliable using ABC compared to traditional costing systems, which often allocate costs based on simplistic and sometimes arbitrary measures, such as direct labor hours or machine hours. ABC aims to provide a more detailed and precise method of assigning costs based on the actual activities that consume resources.

Which of the Following Is Not a Disadvantage of a Full-Fledged