An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because:Multiple Choice under activity-based costing some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products. under activity-based costing the sum of all product costs does not equal the total costs of the company. activity-based costing has not been approved by the United Nation’s International Accounting Board. activity-based costing results in less accurate costs than more traditional costing methods based on direct labor-hours or machine-hours.

Activity-based costing: Under this costing, we find out the economic order quantity. In this…

Answered: An activity-based costing system that…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 6DQ

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An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because:

Multiple Choice

under activity-based costing some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products.
under activity-based costing the sum of all product costs does not equal the total costs of the company.
activity-based costing has not been approved by the United Nation’s International Accounting Board.
activity-based costing results in less accurate costs than more traditional costing methods based on direct labor-hours or machine-hours.

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