The allocation between buyer and seller of the costs incurred when materials are rejected is affected by the kind of materials rejected,trade customs,the buyer's cost accounting procedures,and the positions of strength of each organization.

Question

Quizplus · Accepted Answer

The allocation between buyer and seller of the costs incurred when materials are rejected is dependent on several factors, including the type of materials rejected, trade customs, the cost accounting procedures of the buyer, and the relative strength of each organization. Therefore, the statement is true.

The Allocation Between Buyer and Seller of the Costs Incurred