Accounting for costs of incentive programs for customer purchases:
A) Requires probability estimation.
B) Follows the matching principle.
C) Is a loss contingency situation.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Accounting for costs of incentive programs involves estimating the probability of customers taking advantage of the incentives (probability estimation), matching the costs of the incentives with the revenues they help generate (matching principle), and dealing with uncertainties regarding the extent of customer participation, which can be considered a loss contingency situation.

Accounting for Costs of Incentive Programs for Customer Purchases