To Guide Cost Allocation Decisions, the Cause-And-Effect Criterion ________

question 156

Multiple Choice

To guide cost allocation decisions, the cause-and-effect criterion ________.

• A) is used less frequently than the other criteria
• B) is the primary criterion used in activity-based costing
• C) considers fairness as a matter of judgment rather than an operational criterion
• D) advocates allocating costs in proportion to the cost object's ability to bear costs allocated to it

---

Definitions:

River Terraces

Step-like landforms alongside rivers, formed by the erosion of sediments and changes in water level.

River Terraces

Step-like landforms found alongside river valleys, created as a river cuts downward into its bed while leaving remnant levels of previous floodplain as terraces.

Distributaries

Branches of a river or stream that diverge from the main channel and flow separately into the sea or another body of water.

Delta

A geological feature found where a river flows into slower waters or a standing body of water, created by the accumulation of sediment transported by the river.