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 uses more cost pools to provide more accurate cost allocation, which is not a limitation but rather an advantage.

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