Which of the Following Is True About the Process of Making

question 5

Multiple Choice

Which of the following is true about the process of making cost allocations?

• A) the costs of designing and implementing a cost allocation system are less visible than the benefits of such a system
• B) a cost benefit-analysis cannot be performance on cost allocation systems because the benefits are difficult to estimate
• C) the costs of cost allocation systems is mostly the cost of collection
• D) as the cost of collecting and processing cost allocation information decreases, it becomes more economically feasible to provide more detailed cost allocations

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Definitions:

Subjective Standard

A criterion for judgment that varies based on individual perceptions, feelings, or opinions, rather than objective external factors.

Objective Impossibility

A situation where the fulfillment of a contract is literally impossible due to circumstances beyond the control of the involved parties.

Subjective Impossibility

A situation where a party to a contract feels personally unable to perform their obligations, but the performance may still be possible by someone else.

Commercial Impracticability

A legal doctrine allowing parties to suspend or terminate their contractual obligations when unexpected events fundamentally alter the nature of the contract and performance becomes unfeasibly burdensome.