Which of the Following Is an Application of the Principle

question 125

Multiple Choice

Which of the following is an application of the principle of rational and systematic allocation?

• A) Amortization of intangible assets.
• B) Sales commissions.
• C) Research and development costs.
• D) Officers' salaries.

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Definitions:

Market Definition

The process of characterizing the boundaries of a market, including potential customers and competing products, to understand its dynamics and size.

Effective

Having the intended or expected outcome; the ability to achieve specific goals or results.

Fixed

Costs or expenses that do not change with the level of goods or services produced within a certain time period.

Share Building

The process of increasing a company's market share through strategies like marketing, sales promotion, and product innovation.