Which of the following is false regarding activity-based costing (ABC)?
A) Companies that have a high potential for cost distortions are more likely to benefit with ABC.
B) Opportunities for continuous improvement are rarely revealed by using ABC.
C) The cost of implementing ABC may outweigh the benefits.
D) Increased accuracy with budgeting resources is often realised.

Question

Quizplus · Accepted Answer

ABC is designed to reveal opportunities for continuous improvement, so B is false. A, C, and D are all true statements about ABC.

Which of the Following Is False Regarding Activity-Based Costing (ABC)