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3 December, 00:33

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

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  1. 3 December, 02:30
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    The reasons why an activity-based costing system that is designed for internal decision-making will not uphold to the generally accepted principles of accounting are the following:

    1. S ome manufacturing costs like for example, the costs of idle capacity and organization-sustaining costs, will not be assigned to products.

    2. s ome non-manufacturing costs are assigned to products.

    3. first-stage allocations may be based on subjective interview data.

    Therefore, the answer to this question is this:

    "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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