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Sir there was an mcq in kit that
The following statements have been made about the drawbacks of activity-based
budgeting:
(1) It is not always useful or applicable, as in the short term many overhead costs are not
controllable and do not vary directly with changes in the volume of activity for the
cost driver.
(2) ABB will not be able to provide useful information for a total quality management
programme (TQM).
Which of the above statement(s) is/are true?
A (1) only
B (2) only
C Neither (1) nor (2)
D Both (1) and (2)Correct answer is A. Sir disadvantages of ABB are not covered in OT notes, so then I opened the studytext and read from there and found that option A is correct. Now my question is that I have learned and understood the disadvantage of ABB which is option A, But do I need to read and learn other disadvantages of ABB also from studytext?
The advantages and disadvantages are those of ABC. If you have watched my lectures on ABC then you will know that statement 1 is true. From both the notes and from what you studied for F2 (or for whatever exempted you from F2) you should know that statement 2 is not correct.
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