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:

Loosely Curved Folds

Commonly refers to a stylistic feature in art and textiles where fabric or other materials display soft, flowing, and gently bending lines, suggesting motion or a natural, relaxed demeanor.

French Gothic

Refers to the style of architecture that developed in France during the 12th to 16th centuries, characterized by its innovative use of pointed arches, ribbed vaults, and flying buttresses.

Tuscan Romanesque

An architectural style characterized by its use of Romanesque elements, such as rounded arches and symmetry, prevalent in the Tuscany region of Italy.

Florentine Duomo

The main cathedral of Florence, Italy, known for its distinctive Renaissance architecture and the iconic dome designed by Filippo Brunelleschi.