Identify the obstacle(s)in implementing a successful activity-based costing system.
A) Gaining the cooperation and support of employees.
B) Obtaining accurate cost driver data.
C) Condensing a large number of activities down into a manageable number of activity cost pools.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of the given options are obstacles in implementing a successful activity-based costing system. Gaining the cooperation and support of employees is crucial as they might resist the change and refuse to provide necessary data. Obtaining accurate cost driver data is essential to ensure that the cost allocations are correct. Condensing a large number of activities down into a manageable number of activity cost pools is necessary to avoid complexity and confusion. Therefore, all the given options are obstacles that need to be overcome for the successful implementation of an activity-based costing system.

Identify the Obstacle(s)in Implementing a Successful Activity-Based Costing System