What are the disadvantages of activity based costing, Managerial Accounting

Assignment Help:

Disadvantages of activity based costing

1) It is essentially not the panacea for all ills.

2) It absorbs a lot of resources.

3) Too much emphasis on customer viability can leas to problem such as cheaper product and therefore potentially lower customs segmentation.

4) It may lead to weaker customs segmentation.

5)  It takes no account of opportunity cost.

 


Related Discussions:- What are the disadvantages of activity based costing

Adjusting entries, what do you debit and what do you credit in adjusting en...

what do you debit and what do you credit in adjusting entry for prepaid rent?

Scorecard, Scorecard The traditional approach to the monitoring organiz...

Scorecard The traditional approach to the monitoring organizational performance has focused on the financial measures and the outcomes. Increasingly, companies are realizing th

Uncertainty of demand-determining the safety stocks level, UNCERTAINTY OF D...

UNCERTAINTY OF DEMAND Demand is the most troublesome variable to predict accurately. Actually, demand may fluctuate from day to day, from week to week or from month to month. T

Determine the total labour variance, Problem: Fancy Foods Ltd uses a st...

Problem: Fancy Foods Ltd uses a standard costing system to control its material and labour costs. The standard costs for January 2007 were as follows. Standard Costs Materi

Types of cost classifications, can you better explain to me the classificat...

can you better explain to me the classification by traceability and the classification by function?

Explain cost volume profit analysis, Cost volume profit analysis Meani...

Cost volume profit analysis Meaning and definition Cost volume profit analysis is a technique for studying the relationship between cost volume and profits . profits of an

What are the disadvantages of incremental budgeting, Disadvantages of incre...

Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d

MOH Cost Help, During the year the company worked a total of 145,900 machin...

During the year the company worked a total of 145,900 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,305,346. What is the amount of underapplied o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd