When using the "ability to bear" philosophy in allocating central service costs, actual sales are preferable to budgeted sales.

Question

Quizplus · Accepted Answer

The "ability to bear" philosophy in allocating central service costs typically considers factors such as budgeted sales or profits rather than actual sales, as it aims to distribute costs based on the anticipated ability of each department or unit to absorb these costs without undue hardship.

When Using the "Ability to Bear" Philosophy in Allocating Central