To Guide Cost Allocation Decisions, the Ability to Bear Criterion

question 70

Multiple Choice

To guide cost allocation decisions, the ability to bear criterion ________.

• A) is the primary criterion used in activity-based costing
• B) allocates cost among the beneficiaries in proportion to the benefits each receives.
• C) results in subsidizing products that are not profitable
• D) is used more frequently than any other criteria

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Definitions:

Alveoli

Tiny air sacs within the lungs where the exchange of oxygen and carbon dioxide takes place.

Nasal Cavity

The large air-filled space above and behind the nose in the middle of the face that warms, moistens, and filters air entering the body through the nose.

Bronchiole

Small airways in the lungs that extend from the bronchi and lead to the alveolar ducts.

Laryngopharynx

The lower part of the pharynx just below the oropharynx, facilitating the passage of food to the esophagus and air to the larynx.