Itemize the disadvantages of ABC that have caused some firms to abandon this technique
1 . ABC has been criticized for being too time consuming and complicated for practical applications over a sustained period.
2 . Critics charge that rather than promoting continuous improvement, ABC creates complex bureaucracies within organizations that are in conflict with the lean manufacturing philosophies of process simplification and waste elimination.
3 . The task of identifying activity costs and cost drivers can be a significant and ongoing undertaking. As products and processes change so do the associated activity costs and drivers.
4 . Unless significant resources are committed to maintaining the accuracy of activity costs and the appropriateness of drivers, cost assignments become inaccurate.
You might also like to view...
Theme colors can be customized on the slide master
Indicate whether the statement is true or false
Team members should be selected on the basis of ____.
A. friendship B. familiarity C. loyalty D. characteristics of the project
Which of the following is not an aspect of the "dark side" of entrepreneurship?
a. confrontation with risk b. stress c. entrepreneurial ego d. bouts of euphoria
CASE is an example of a:
A) technique. B) tool. C) methodology. D) data flow. E) customer.