Economics · Accounting and Auditing
Which of the following is NOT a limitation of Activity-Based Costing (ABC)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Set-up costs as well as costs of running and updating the ABC system are very high
- 2All costs cannot be identified easily with a particular activity
- 3It does not provide relevant information for short-term tactical decision making
- 4It involves various support activities in the process of making products✓
Correct answer
It involves various support activities in the process of making products
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