When considering implementing activity-based costing, management should consider all advantages and disadvantages. Which of the following would be considered a disadvantage?
A) Better pricing decisions.
B) Employee pushback
C) More precise profit planning
D) Sound make-or-buy decisions

Question

Quizplus · Accepted Answer

This question requires that you determine what would be considered advantages of activity-based costing. Advantages include better pricing decisions (Choice A), more precise profit planning (Choice C), and sound make-or-buy decisions (Choice D). Employee pushback (Choice B) is the correct choice as it is considered to be a disadvantage of activity-based costing.

When Considering Implementing Activity-Based Costing, Management Should Consider All Advantages