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Problem 1: An activity-based costing system that is designed for internal decision-making generally will not conform to generally accepted accounting principles. Which of the following is NOT a reason for this happening?
Group of answer choices
Option 1: Allocation bases other than direct labor-hours, direct labor cost, and machine-hours are used.
Option 2: Some nonmanufacturing costs are assigned to products.
Option 3: Some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products.
Option 4: First-stage allocations may be based on subjective interview data.
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