Which of the following is not a benefit of activity-based costing (ABC)?
A) Increased product cost information
B) Increased accuracy in the budgeting process
C) Increased implementation costs
D) Increased understanding of activities that drive overhead costs

Question

Quizplus · Accepted Answer

Although ABC provides many benefits, increased implementation costs are not one of them. In fact, the initial implementation costs can be quite high due to the need to gather detailed information about activities and their associated costs. However, this cost can be justified by the increased accuracy in product cost information and budgeting, as well as the ability to identify the activities that drive overhead costs.

Which of the Following Is Not a Benefit of Activity-Based