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

Question

Quizplus · Accepted Answer

As the cost of collecting and processing cost allocation information decreases, it becomes more economically feasible to provide more detailed cost allocations. This is because the benefits of having more detailed cost allocations outweigh the costs of collecting and processing the information. Option A is incorrect because the costs of designing and implementing a cost allocation system can be significant and should not be overlooked. Option B is incorrect because a cost-benefit analysis can be performed on cost allocation systems, although it may be challenging to estimate the benefits. Option C is incorrect because the cost of collection is only one component of the overall cost of a cost allocation system.

Which of the Following Is True About the Process of Making