(Appendix 7A)Why Would an Activity-Based Costing System That Is Designed

question 21

Multiple Choice

(Appendix 7A) Why would an activity-based costing system that is designed for internal decision making NOT conform to generally accepted accounting principles?

• A) Some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products.
• B) Some non-manufacturing costs are assigned to products.
• C) First-stage allocations may be based on subjective interview data.
• D) All of the above.

---

Definitions:

Conventional

Adhering to accepted standards and norms of behavior, thought, or technique, often in contrast to unconventional or innovative approaches.

Moral Development

A field of study in psychology that focuses on the evolution of morality—right and wrong, justice, and values—as individuals grow and integrate into society.

Androgens

A group of hormones that play a role in male traits and reproductive activity; includes testosterone.

Endocrine Disorder

A medical condition characterized by the improper functioning of the endocrine glands, affecting the hormonal balance in the body.