When the Purpose of Cost Allocation Is to Provide Information

question 146

Multiple Choice

When the purpose of cost allocation is to provide information for economic decisions or to motivate managers and employees, which of the following would be the best criteria?

• A) the cause-and-effect and the ability-to bear criteria
• B) the cause-and-effect and the benefits-received criteria
• C) the benefits-received and the fairness criteria
• D) the fairness and the ability-to-bear criteria

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Definitions:

Aerial Perspective

A visual perception cue based on the understanding that objects farther away appear less defined, lighter, and bluer than objects that are closer, contributing to depth perception.

Motion Parallax

A depth cue that involves the apparent relative motion of stationary objects as observed by a moving observer, which aids in depth perception.

Retinal Disparity

The slight difference in the visual images that reach each eye, leading to the perception of depth.

Depth Perception

The visual ability to perceive the world in three dimensions (3D) and the distance of an object.