Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 7 - Activity-Based Costing: A Tool to Aid Decision Making - Questions - Page 315: 7-5

Answer

Organization-sustaining costs, customer- level costs, and the costs of idle capacity should not be assigned to products. These costs represent resources that are not consumed by the products.

Work Step by Step

As given above
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