To guide cost allocation decisions, the ability to bear criterion:
A)is likely to be the most credible to operating personnel
B)allocates costs in proportion to the benefits received
C)results in subsidizing products that are not profitable
D)is the criterion often cited in government contracts

Question

Quizplus · Accepted Answer

The ability to bear criterion allocates more costs to products or departments that are more profitable, which can result in subsidizing less profitable or unprofitable products.

To Guide Cost Allocation Decisions, the Ability to Bear Criterion