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

question 98

Multiple Choice

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because:

• A)under activity-based costing the sum of all product costs does not equal the total costs of the company.
• B)under activity-based costing manufacturing costs are assigned to products.
• C)activity-based costing has not been approved by the United Nation's International Accounting Board.
• D)activity-based costing results in less accurate costs than more traditional costing methods based on direct labor-hours or machine-hours.

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