Which of the following is not a benefit of an ABC system?
A) Reducing arbitrary cost measurement
B) Increased bonuses for managers
C) Optimising use of constrained resources
D) Motivating employees to find ways to improve performance

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) focuses on accurate cost measurement and management decisions, not directly on increasing bonuses for managers. Its benefits include reducing arbitrary cost allocations, optimizing the use of constrained resources, and motivating performance improvements, but not necessarily increasing manager bonuses.

Which of the Following Is Not a Benefit of an ABC