When the Purpose of Cost Allocation Is to Provide Information

question 146

Multiple Choice

When the purpose of cost allocation is to provide information for economic decisions or to motivate managers and employees, which of the following would be the best criteria?

• A) the cause-and-effect and the ability-to bear criteria
• B) the cause-and-effect and the benefits-received criteria
• C) the benefits-received and the fairness criteria
• D) the fairness and the ability-to-bear criteria

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Definitions:

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone" because its levels increase in response to stress and low blood-glucose concentration.

Immune Responses

The body's defensive reactions to foreign substances or pathogens, including the production of antibodies and other mechanisms of immunity.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension, which can come from any event or thought that makes someone feel frustrated, angry, or nervous.

Weight Loss

The process of losing body mass by reducing body fat and/or lean mass.