Final answer:
Activity-based costing methods have some potential drawbacks, including complexity and the possibility of misallocation of costs.
Step-by-step explanation:
Activity-based costing (ABC) methods are generally considered superior to time-based costing methods, but they do have some potential downsides.
One potential drawback of ABC is its complexity. Implementing ABC requires detailed analysis and allocation of costs to specific activities, which can be time-consuming and resource-intensive. This complexity may also make it more difficult for managers and employees to understand and use the information provided by ABC.
Another potential drawback is the possibility of misallocation of costs. If the cost allocation process for activities is not accurate or transparent, it could lead to incorrect cost information and decisions.