Assume the Multiplier Method Is Used and the Multiplier Is

question 58

Multiple Choice

Assume the multiplier method is used and the multiplier is determined to be 3 based on experience.Accounting records show that the measured external failure costs are $500,000.What would be the estimated total external failure costs?

• A)$55,556
• B)$166,667
• C)$1,500,000
• D)$4,500,000