An Activity-Based Costing That Is Designed for Internal Decision Making

question 42

Multiple Choice

An activity-based costing that is designed for internal decision making may not confor? to generally accepted accounting principles. Which of the following would cause that to be the case?

• A)Direct manufacturing costs for labour and material are included.
• B)Indirect manufacturing costs for indirect labour are included.
• C)Some non-manufacturing costs are assigned to products.
• D)Indirect manufacturing costs for indirect materials are included.

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Definitions:

Separating Elements

Components or techniques used in systems and processes to divide, isolate, or detach different substances or parts.

Electrically

Pertaining to or operated by electricity; involving, derived from, or related to electricity.

Ionization Potential

The minimum amount of energy required to remove the most loosely bound electron from an isolated neutral atom or molecule.

Voltage

An electrical measurement expressing the potential difference between two points, the driving force of electric current.