Asked by Jameka Hicks on Jun 08, 2024
Verified
Despite the obvious advantages of ABC, many firms are still reluctant to implement it. What are the reasons for this reluctance?
i. Uncertainty about the benefits of ABC.
ii. The opinion that the current system serves all the firm's needs.
iii. Lack of resources to implement ABC.
A) i and ii
B) ii and iii
C) i and iii
D) i, ii and iii
ABC Implementation
The process of applying Activity-Based Costing, an accounting method that assigns costs to activities based on their use of resources.
Uncertainty
A condition characterized by a lack of sufficient knowledge, making it difficult to precisely identify the current situation, predict future events, or acknowledge multiple potential outcomes.
- Determine the issues and challenges linked to the introduction of activity-based costing in corporate environments.
Verified Answer
JD
joseph donaldJun 11, 2024
Final Answer :
D
Explanation :
The reluctance to implement Activity-Based Costing (ABC) can stem from uncertainty about its benefits, satisfaction with the current system, and a lack of resources. These factors contribute to firms' hesitation to adopt ABC despite its potential advantages.
Learning Objectives
- Determine the issues and challenges linked to the introduction of activity-based costing in corporate environments.
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