Which of these is considered to be the 'ideal' way to match expenses?
A)Allocation of costs
B)Cause and effect
C)Immediate recognition
D)All of the above are equally 'ideal' depending upon the circumstances

Question

Quizplus · Accepted Answer

Cause and effect is considered to be the most ideal way to match expenses because it directly links the expenses to the revenue they generate. Allocation of costs and immediate recognition may be appropriate in certain circumstances, but they do not always accurately reflect the cause and effect relationship between expenses and revenue.

Which of These Is Considered to Be the 'Ideal' Way