In Activity-Based Costing, Organization-Sustaining Costs Should Not Be Included in Product

question 67

True/False

In activity-based costing, organization-sustaining costs should not be included in product costs for internal management reports that are used for decision-making. However, companies frequently include organization-sustaining costs in product costs to satisfy external reporting requirements.

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Definitions:

Fourth Amendment

A provision in the U.S. Constitution that protects individuals from unreasonable searches and seizures by the government.

Procedural Due Process

The requirement that a government must use fair procedures before depriving a person of his or her life, liberty, or property.

Substantive Due Process

The requirement that laws depriving an individual of life, liberty, or property be fair and not arbitrary.

Double Jeopardy

A legal principle that prohibits an individual from being tried twice for the same crime on the same set of facts.