Under the Stand-Alone Method of Allocating Common Costs

question 39

Multiple Choice

Under the stand-alone method of allocating common costs

• A)a ranking is used to allocate costs among the users.
• B)disputes can arise over who is the primary user.
• C)each party bears a proportionate share of the total costs in relation to their individual stand-alone costs.
• D)an incentive is created to be the first-ranked user.
• E)the parties are interested in being viewed as primary users.

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Definitions:

Reciprocity/Obligation Approach

A social exchange principle suggesting that individuals feel compelled to return favors or respond in kind to the actions of others.

Appropriateness

The degree to which an action, response, or behavior matches the expected norms or circumstances.

Reciprocity/Obligation Rule

The social norm of responding to a positive action with another positive action, fostering mutual benefit.

Rejection-Then-Retreat Approach

A persuasive technique where an initially larger request is made knowing it will be rejected so that a smaller request (the desired outcome) seems more reasonable.