ABC are more costly to develop when activities:
A) use multiple types of resources
B) have costs that are difficult to trace
C) data for the cost driver is difficult to obtain
D) all of the above

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) systems become more costly to develop when activities use multiple types of resources, have costs that are difficult to trace, and when data for the cost driver is difficult to obtain. These factors increase the complexity and effort required to accurately allocate costs, making the development of ABC systems more expensive.

ABC Are More Costly to Develop When Activities