Puff Animal Hospital looks after the health of household pets such as dogs,cats,birds and rabbits.The hospital wants to use an activity based costing system to allocate costs to each animal case it handles.These cases tend to vary in their complexity: some pets are here for a regular check ups and immunisation;other pets have emergencies which require surgery.Some pets are very exotic and require the attention of the supervisor vet;others are common animals with common problems such that only the junior vets are needed.Puff Animal Hospital is quite large;on average there are five vets,a general assistant,and two receptionists on duty at one time.Which of the following is NOT a reason that supports the use of activity-based costing at Puff Animal Hospital?

Question

Quizplus · Accepted Answer

Activity-based costing is beneficial when it's difficult to trace costs directly to products or services. If it's easy to trace the time each vet spends on different animals, traditional costing methods might suffice, making this not a supporting reason for using activity-based costing.

Puff Animal Hospital Looks After the Health of Household Pets