High implementation costs
While the program may be more accurate in determining the costs of activities in the production process, the cost of implementing this program is expensive and time consuming. The process takes into consideration the analysis of each activity in the organization. this analysis can be time consuming and may utilize organizational resources that should have been used elsewhere. The process also requires professional consultation during its set up and training of the staff before its implementation[1]. In cases of automating the organization’s activities to use the activity-based costing program. These additional costs cannot justify the benefits of the ABC program especially where the organization either produces a single product or the organization size is small. the additional implementation costs come as unintended consequences of the program.
Data interpretation problems