An activity-based costing system that is designed for internal decision-making w

Question

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because:
A) some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products.
B) some non-manufacturing costs are assigned to products.
C) first-stage allocations may be based on subjective interview data.
D) all of the above are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.

Explanation / Answer

D) all of the above are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.

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