A major disadvantage of activity-based costing (ABC) in a government setting is the very limited number of activities for which it can be used.

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Activity-based costing (ABC) can be used in a government setting for a variety of activities, such as resource consumption, program evaluation, or performance measurement. However, it may have some limitations in terms of the availability and accuracy of data, the complexity of the analysis, and the potential resistance from stakeholders. Therefore, while ABC can provide valuable insights into the costs and benefits of different government programs and services, it should be used in conjunction with other methods of cost analysis and performance evaluation.

A Major Disadvantage of Activity-Based Costing (ABC) in a Government