An alternative concept of fairness in cost allocation, absent the cause-and-effect basis, includes:
A)Ability-to-bear.
B)Efficiency.
C)Different costs for different purposes.
D)Consistency.

Question

Quizplus · Accepted Answer

Ability-to-bear is a concept of fairness in cost allocation that takes into account the ability of each participant to bear the costs of a particular project or activity. This approach is based on the principle that those who have more resources or are better able to bear the costs should contribute more than those who have fewer resources or are less able to bear the costs. It is considered a fair and just way to allocate costs, especially in situations where the cause-and-effect basis is not applicable or difficult to determine. The other options (B, C, D) may also be relevant in certain situations, but ability-to-bear is generally considered the most appropriate alternative concept of fairness in cost allocation.

An Alternative Concept of Fairness in Cost Allocation, Absent the Cause-And-Effect