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

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29 January, 12:56

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

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Dreamey · Answer 1

The reasons why an activity-based costing system that is designed for internal decision-making will not uphold to the generally accepted principles of accounting are the following:

1. S ome manufacturing costs like for example, the costs of idle capacity and organization-sustaining costs, will not be assigned to products.

2. s ome non-manufacturing costs are assigned to products.

3. first-stage allocations may be based on subjective interview data.

Therefore, the answer to this question is this:

"all of the above are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles."