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 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.

Explanation / Answer

correct answer is under activity-based costing the sum of all product costs does not equal the total costs of thecompany.... since In an ABC system product costs exclude some manufacturing costs and include some non manufacturing costs.

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