Question

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because: activity-based costing results in less accurate costs than more traditional costing methods based on direct labor-hours or machine-hours. under activity-based costing manufacturing costs are assigned to products. under activity-based costing the sum of all product costs does not equal the total costs of the company. activity-based costing has not been approved by the United Nation's International Accounting Board.

Answer 1

Answer:

under activity-based costing the sum of all product costs does not equal the total costs of the company.

Explanation:

The method of an activity-based costing system can be used use to find the total cost of all the activities that are required to make a product. This system also helps to find out which overhead costs can be avoided.

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because under activity-based costing the sum of all product costs does not equal the total costs of the company.