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Give the disadvantages of Activity Based Costing (ABC)

      

Give the disadvantages of Activity Based Costing (ABC)

  

Answers


Martin
i. It may not be possible to identify the cost drivers for each activity

ii. Some overheads are common to more than 1 activity and it may be difficult to identify the
cost driver to use

iii. It is difficult to operate the system where we have large number of O/H items

iv. It is expensive to operate especially where it is complex to identify a cost driver which is
appropriate.
marto answered the question on March 4, 2019 at 06:14


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