Under GAAP, Three Approaches to Expense Recognition Are Generally Allowed

Under GAAP, three approaches to expense recognition are generally allowed: associating cause and effect, systematic and rational allocation, and immediate recognition. A health plan most likely would use the approach of systematic and rational allocation in order to

A) Report the payment of the health plan's utility bills
B) Spread the payment of sales force commissions over the premium paying period of healthcare coverage
C) Report the fees paid by the health plan to attorneys and consultants
D) Depreciate the cost of a new computer system over the useful life of the system