Which of the following is a limitation of activity-based costing?
A)more cost pools
B)less control over overhead costs
C)poorer management decisions
D)some arbitrary allocations continue

Question

Quizplus · Accepted Answer

Activity-based costing involves identifying and allocating costs to multiple cost pools based on the activities that drive those costs. However, even with this approach, some arbitrary allocations may continue to be necessary, leading to potential inaccuracies in cost assignments. This is a limitation of activity-based costing.

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