Sunday, May 27, 2012

Under the stand-alone method of allocating common costs

ACCOUNTING

Multiple Choice

Under the stand-alone method of allocating common costs

a. a ranking is used to allocate costs among the users.

b. disputes can arise over who is the primary user.

c. each party bears a proportionate share of the total costs in relation to their individual stand-alone costs.

d. an incentive is created to be the first-ranked user.

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