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

Multiple Choice

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

A) some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products.
B) some nonmanufacturing costs are assigned to products.
C) first-stage allocations may be based on subjective interview data.
D) all of these are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.