Which of the following is a disadvantage of an activity-based costing system?
A) It classifies some indirect costs as direct costs.
B) It assumes all costs as direct costs.
C) It needs activity-cost rates to be updated regularly.
D) It ignores direct costs of a product.

Question

Quizplus · Accepted Answer

Activity-based costing system needs activity-cost rates to be updated regularly to accurately allocate indirect costs to products or services.

Which of the Following Is a Disadvantage of an Activity-Based