Each of the following is a limitation of activity-based costing except that
A) it can be expensive to use.
B) it is more complex than traditional costing.
C) more cost pools are used.
D) some arbitrary allocations continue.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is designed to reduce arbitrary allocations by assigning costs more directly based on actual activities, making the use of more cost pools a feature rather than a limitation.

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