The Ability-To-Bear Criterion Is Considered Superior When the Purpose of Cost

question 10

True/False

The ability-to-bear criterion is considered superior when the purpose of cost allocation is motivation.

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Definitions:

Margin

The difference between the cost of a product or service and its selling price.

Economics

The efficient allocation of the scarce means of production toward the satisfaction of human wants.

Input

Resources used in the production process, including labor, materials, machinery, and other factors of production.

Demand

The volume of goods or services that individuals are prepared and financially able to acquire at varying price points during a certain time span.