Tuesday, November 15, 2011

A challenge to using cost-benefit criteria for allocating costs is that

ACCOUNTING

Multiple Choice

A challenge to using cost-benefit criteria for allocating costs is that

a. the costs of designing and implementing complex cost allocations are not readily apparent.

b. the benefits of making better-informed pricing decisions are difficult to measure.

c. cost systems are being simplified and fewer multiple cost-allocation bases are being used.

d. the costs of collecting and processing information keep spiraling upward.

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