What might be an impediment in changing from a traditionally based costing system to an activity-based costing system?
A)Management may not be in favour of a change.
B)Excessive costs may be incurred to assist in capturing costs.
C)Some costs would still have to be allocated arbitrarily after the changeover.
D)All of the above are impediments.

Question

Quizplus · Accepted Answer

All of the listed factors can be potential impediments in changing from a traditional costing system to an activity-based costing system. Management may resist a change in the costing system, as it may require additional work and resources to adapt. There could also be additional costs incurred to capture and measure the activities required for the activity-based costing system. Additionally, some costs may still need to be allocated arbitrarily, even with an activity-based costing system, which could limit the extent of the system's advantages.

What Might Be an Impediment in Changing from a Traditionally