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  2. Topic
    Business
  3. Study Set
    Cost Accounting
  4. Exam
    Exam 5: Activity-Based Costing and Activity-Based Management
  5. Question
    Which of the Following Is a Disadvantage of an Activity-Based
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Which of the Following Is a Disadvantage of an Activity-Based

Question 3

Question 3

Multiple Choice

Which of the following is a disadvantage of an activity-based costing system?


A) It classifies some indirect costs as direct costs.
B) It assumes all costs as direct costs.
C) It needs activity-cost rates to be updated regularly.
D) It ignores direct costs of a product.

Correct Answer:

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