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

Question

Business

Yurem Travis

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:

+1

Answers (1)

Know the Answer?

Kendall Russo · Answer 1

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."