Which of the following is not a limitation of activity-based costing? a. Changin

Question

Which of the following is not a limitation of activity-based costing? a. Changing from a traditional direct labor-based costing system to an activity-based costing system changes product margins and other key performance indicators used by managers. Such changes are often resisted by managers. b. Maintaining an activity-based costing system is more costly than maintaining a traditional direct labor-based costing system. c. In practice, most managers insist on fully allocating all costs to products, customers, and other costing objects in an activity-based costing system. This results in overstated costs. d. More accurate product costs may result in increasing the selling prices of some products.

Explanation / Answer

d. More accurate product costs may result in increasing the selling prices of some products.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.