Question: The basic ideas justifying the use of activity based costing (ABC) and activity-based budgeting (ABB) are well publicized, and the number of applications has increased.

The basic ideas justifying the use of activity based costing (ABC) and activity-based budgeting (ABB) are well publicized, and the number of applications has increased. However, there are apparently still significant problems in changing from existing systems.
Requirements:
(a) Explain the problems that may cause an organization to decide not to use, or to abandon use of, activity-based techniques. (8 marks)

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