Each of the following is a limitation of activity-based costing except that
A) it can be expensive to use.
B) it decreases control over overhead costs
C) it is complex and can be difficult to understand
D) some arbitrary allocations continue.

Question

Quizplus · Accepted Answer

Activity-based costing actually increases control over overhead costs, so B is not a limitation of it. A, C, and D are all limitations of activity-based costing.

Each of the Following Is a Limitation of Activity-Based Costing