Which of the Following Statements Is True About Support Cost

question 29

Multiple Choice

Which of the following statements is true about support cost allocation?

• A) Companies can maximize or minimize their income by selecting different allocation bases for support costs.
• B) Companies can select allocation bases to raise or lower reported income on given products.
• C) Companies' total incomes will remain unchanged no matter how support costs are allocated.
• D) Companies should usually allocate support costs randomly or based on an ability-to-bear criterion.

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