A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

Question

Quizplus · Accepted Answer

The use of different costing methods can significantly impact the costs attributed to different activities in the manufacturing process. This will impact the cost comparison between making a product internally versus buying it from a supplier. Therefore, the use of standard costing versus activity-based costing can have implications for the make-or-buy decision. The other options are not as directly related to costing methods.

A Manufacturer Uses Standard Costing, and a Potential Supplier Uses