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

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.