Which of these is not a benefit of Activity Based Costing?
A) Increased awareness of cause and effect relationships
B) Identification of non-value-added activities
C) Cost benefit trade-offs
D) All of the above are benefits.

Question

Quizplus · Accepted Answer

Activity Based Costing (ABC) focuses on identifying activities and assigning costs to them based on actual consumption, which helps in understanding cause and effect relationships and identifying non-value-added activities. However, "cost benefit trade-offs" is not a direct benefit of ABC; instead, ABC aids in accurate cost allocation and management decision-making.

Which of These Is Not a Benefit of Activity Based