To Guide Cost Allocation Decisions, the Fairness or Equity Criterion

question 40

Multiple Choice

To guide cost allocation decisions, the fairness or equity criterion ________.

• A) considers reasonableness as a matter of judgment rather than an operational criterion
• B) allocates cost among the beneficiaries in proportion to the benefits each receives
• C) is used more frequently than any other criteria
• D) is the primary criterion used in activity-based costing

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Definitions:

Farmers

Individuals engaged in agriculture, raising living organisms for food or raw materials.

Courtesy

The showing of politeness in one's attitude and behavior towards others.

Positive Energy

The bringing or emanation of a positive, uplifting, and optimistic attitude that can influence oneself and those around positively.

Dialogue

A conversation between two or more people as a feature of a book, play, or movie, or a discussion aimed at resolution.