To Guide Cost Allocation Decisions, the Benefits-Received Criterion ________

question 152

Multiple Choice

To guide cost allocation decisions, the benefits-received criterion ________.

• A) generally uses the cost driver as the cost allocation base
• B) advocates allocating costs in proportion to the cost object's ability to bear costs allocated to it
• C) is the primarily used criterion in activity-based costing
• D) may use an allocation base of division revenues to allocate advertising costs

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Definitions:

Gantt Load Chart

A visual tool in project management that illustrates the progress or schedule of tasks/activities against time.

Gantt Load Chart

A graphical representation of a project schedule, showing the start and finish dates of elements as well as their relationships to each other.

Service Systems

The configuration of people, technology, organizations, and information designed to deliver services that create value for the service provider and its customers.