Despite the obvious advantages of ABC, many firms are still reluctant to implement it. What are the reasons for this reluctance?
i. Uncertainty about the benefits of ABC.
ii. The opinion that the current system serves all the firm's needs.
iii. Lack of resources to implement ABC.
A) i and ii
B) ii and iii
C) i and iii
D) i, ii and iii

Question

Quizplus · Accepted Answer

The reluctance to implement Activity-Based Costing (ABC) can stem from uncertainty about its benefits, satisfaction with the current system, and a lack of resources. These factors contribute to firms' hesitation to adopt ABC despite its potential advantages.

Despite the Obvious Advantages of ABC, Many Firms Are Still