Question: ( 4 6 ) Why is an activity - based costing ( ABC ) system not used by all companies? It takes more time and

(46) Why is an activity-based
costing (ABC) system not used
by all companies?
It takes more time and
expense to create and
administer an ABC system.
Implementing an ABC
system requires very little
analysis of the factors that
create overnead costs.
An ABC system is based
only on direct labor hours.
ABC is not useful when
the production process
varies for different
products.
(46) Why is an activity-based costing (ABC) system not used by

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