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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