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

question 47

Multiple Choice

An activity-based costing that is designed for internal decision making may not conform 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 materials are included.
• C) Some non-manufacturing costs are assigned to products.
• D) Indirect manufacturing costs for indirect labour are included.

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Definitions:

Equilibrium

A state of balance or stability within a system, achieved when all forces or influences are equal and opposing, leading to no net change.

Biological Conditions

Refer to physical or physiological states that affect the living organisms' bodily functions.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions and drives, such as fear, pleasure, and anger.

Emotional Memories

Memories strongly influenced by emotions, which can alter the recall's intensity and accuracy.