Which of the following criteria has the presumption that the more-profitable divisions have a greater ability to absorb corporate administration costs?
A) the fairness or equity criterion
B) the ability to bear criterion
C) the cause-and-effect criterion
D) the benefits-received criterion

Question

Quizplus · Accepted Answer

The ability to bear criterion is the one that presumes that more profitable divisions have a greater ability to absorb corporate administration costs. This criterion takes into consideration the financial capacity of each division and how it can handle additional costs.

Which of the Following Criteria Has the Presumption That the More-Profitable