Which of the following is a limitation of activity-based?

Limitations of an activity-based costing system include which of the following? Explanation: Activity-based costs anticipate increased cost pools and increased allocation bases. The determination of the amounts that go in these pools and their related cost drivers will likely be more costly than in traditional systems.

Which of the following is a limitation to activity-based costing?

The disadvantages of the ABC method include it being expensive to implement, as well as maintenance, being a time-consuming process, being used only for internal reporting, and having the possibility of some excluded costs.

What is a limitation of activity-based costing ABC quizlet?

A limitation of ABC is a certain overhead costs remain to be allocated by means of some arbitrary volume-based cost driver. More cost pools are an advantage of ABC, ABC can lead to better management decisions, and ABC results in more control overhead costs.

What are the disadvantages of activity based management?

What are the challenges of activity-based costing?

One of the main challenges of ABC is that it requires a lot of data collection and analysis to identify, measure, and assign the activities and cost drivers. This can be time-consuming, costly, and complex, especially if you have a large number of products, services, processes, and customers.

Disadvantages of Activity Based Costing

What are the limitations of activity-based costing quizlet?

What are some of the limitations of activity-based costing systems? Managers and employees may resist the change to ABC. ABC procedures produce numbers that do not match traditional costing. ABC requires substantial resources.

What are the disadvantages of activity based cost?

Disadvantages of an Activity Based Costing System: - Data collection process for this system is very time consuming. - The capital expenditure on the activity based system and its subsequent running costs can be a road block for firms.

What are the problems with activity based working?

For instance, if there are too many brainstorming rooms but not enough quiet zones, employees might have difficulty finding a place to focus on their work. Additionally, if not enough consideration is given to people's work styles, some employees may find that they don't have a good fit with the new system.

Which of the following are not advantages of activity based accounting?

The correct option is (D) less costly to use. The activity-based costing is more costly to use than the traditional method of overhead allocation. This is so because we need to maintain date for multiple cost drivers and manage more cost pools. All other options are advantages of activity-based costing.

What is a limitation of the ABC model?

Limitations. One disadvantage of the ABC model may be that it can take time, patience, and trial and error.

What is not a benefit of activity-based costing?

Fewer cost pools used to assign overhead costs to products is not a benefit of activity based costing.

What are the benefits and limitations of activity-based costing?

While using ABC has benefits, such as more precise cost allocation, improved process efficiency, and better decision-making, it also has drawbacks, such as the potential for increased complexity and costs. ABC might be most appropriate for companies with complex and diverse production processes or high overhead costs.

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

Detailed Solution. The correct answer is It involves various support activities in the process of making products. The statement "It involves various support activities in the process of making products" is not a limitation of activity-based costing (ABC).

What is an example of activity-based costing?

For example, in a factory, the number of hours a machine runs determines how much electricity is used and how much will have to be spent on maintenance. In this example, the number of machine hours is the cost driver that controls how much electricity is used and the cost of maintenance.

What is the limitation of activity centered curriculum?

Are there any disadvantages of the Activity Oriented Curriculum? The activity-based instruction method requires long-term planning with minute details of the whole process. Before engaging learners, the teacher should ensure that all students have sufficient knowledge and skills about their tasks.

What are the effects of activity based learning?

Activity-based learning facilitates students to learn self-direction and develop critical thinking skills for problem solving at all levels of education.

What are the disadvantages of using a game based teaching method?

Game-based learning has several disadvantages. One challenge is the preconceived notions and negative attitudes towards game-based learning, which can hinder its implementation. Another disadvantage is the unwillingness of teachers to change and adapt to using games in education.

What is an example of activity based working?

The concept of activity based working (ABW) evolves around the idea of giving people the possibility to do a work-related activity in a setting that is fully optimized to do that specific activity. Examples of such a setting are silent zones, collaboration zones, learning zones, social zones, etc.

What is an example of activity based learning?

Besides this, puzzles, games, role play, skits, story-telling, demonstrations using real objects, taking students on an educational tour, playing a subject-related video, and showing a documentary in the classroom are all examples of activity-based learning/teaching methods.

How does activity based learning affect students?

Students believe that activity based learning enhance understanding, increase a sense of responsibility, create attractive learning environment and increase achievement.

What are the 5 disadvantages of cost principle?

The costing records only indicate previous performance, but management makes long-term decisions. Cost accounting incorporates costs at a specified pace. The prior year's cost is not the same as current year's cost. As a result, cost figures aren't particularly useful.

What are the advantages and disadvantages of activity-based costing over traditional costing?

While ABC systems more accurately allocate the costs based on the various resources used to make the product, they cost more to use and, therefore, are not always the best method. Management needs to consider each system and how it will work within its own organization.

What are the pros and cons of utilizing activity-based costing vs traditional costing?

In practice, ABC helps managers identify cost-causing activities. To manage costs, production managers learn to manage the activities that cause costs. Activity-based costing provides more information about product costs than traditional methods but requires more record-keeping.