alleryStart learning →What limits the use of ABC, especially in services?
ACost of data capture
BLack of overheads
CIts ban under GAAP
DAbsence of products
Answer & Solution
Correct answer: A. Cost of data capture
Capturing the detailed activity data is costly, which slows adoption.
Keep practising Total Absorption Costing
Browse all Total Absorption Costing questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
In the CIMA description of ABC, activities are assigned to what?In which journal did Cooper and Kaplan publish ABC articles from 1988?Drucker said ABC also records the cost of what?What is a danger of ABC, like other cost allocation approaches?The chief executive's salary stays unassigned in ABC. What are such costs termed?Why did indirect costs rise relative to direct costs in modern factories?How does ABC assign costs, rather than using broad arbitrary percentages?Broad overhead percentages on common costs risk what outcome among products?