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

Value analysis-material control, Value analysis Is a formalized techniq...

Value analysis Is a formalized technique involving a rigorous analysis of products at the design stage or at any time during the saleable lives, to determine their value charac

Integer programming, Integer Programming It is a technique for solving ...

Integer Programming It is a technique for solving a linear programming model with an added constraint that the decision variables must only be non-negative integers. In the

Exercises and Problems, Exercises 2-1, 2-2, 2-3, 2-4 Problem 2-14 I didn’t...

Exercises 2-1, 2-2, 2-3, 2-4 Problem 2-14 I didn’t write every question down out of the book just questions 2-1, and 2-2. Exercise 2-1 classifying manufacturing cost. Your boat,

Full service non recourse, Full Service Non Recourse: in this method the b...

Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is

Lowering the average ticket price by 10 percent, Airlines give away million...

Airlines give away millions of tickets each year through their frequent flyer programs, with the typical airline awarding a free ticket for each 25,000 miles flown on the airline.

Determine the distribution cost and research cost, Determine the Distributi...

Determine the Distribution cost and Research cost Distribution cost: The cost of sequence of the operations which begin with making the packed product available for dispa

Explain administration cost and pre production costs, Explain Administratio...

Explain Administration cost and Pre production costs Administration cost: The cost of formulating policy, directing the organization and controlling the operating of an u

Accrued expenses, The other source of spontaneous short-term financing is t...

The other source of spontaneous short-term financing is the accrued expenses which arise by the general conduct of business. An accrued expense is an expense which has been incurre

State material price variance, State Material price variance Difference...

State Material price variance Difference among standard price and the actual price of the material is the material price variance. This variance arises because of various facto

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