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Which of the following costs should not be included in product costs for internal management reports that are used for decision-making?

User MeltingDog
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Answer: d. Cost of organization sustaining activities

Step-by-step explanation:

Organization sustaining activities are those undertakings that have to be made if a company can keep operating. Examples include; property taxes, insurance, information filing with Government agencies and etc.

These activities are therefore not directly linked to the production process as they are not related to a single product and so should not be included in product costs for internal management reports which will be used for decision-making.

User Gary Samad
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