Generally the costs of ABC are higher when there are fewer activities in the businesses processes.

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) typically results in higher costs when there are more activities in the business processes, as it allocates overhead costs based on the actual activities that drive costs, rather than spreading costs uniformly. Fewer activities usually mean simpler allocation and potentially lower costs.

Generally the Costs of ABC Are Higher When There Are