Question

Excessive cost if often perceived as a disadvantage of implementing: a. Activity-based costing. b. Zero-based budgeting....

Excessive cost if often perceived as a disadvantage of implementing:

a. Activity-based costing.

b. Zero-based budgeting.

c. Both a and b.

d. Neither a nor b.

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Answer #1

Excessive cost if often perceived as a disadvantage of implementing both activity based costing and zero based budgeting.

Therefore, the correct answer is c. Both a and b

Explanation:

Zero based budgeting is very complex and costly. Therefore, one of the disadvantages of zero based budgeting is excessive costs.

In case of activity based costing, it can also be very costly to implement. If the overhead cost and related waste is low, its excessive cost is becomes a disadvantage of implementing.

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