The belief that a corporate division with higher sales ought to be allocated more of the company's advertising costs because it must have derived more benefit from the expenditures than a division with lower sales, is an example of which criteria for cost allocation decisions?
A)ability to bear
B)benefits expended
C)causality
D)fairness and equity
E)benefit received

Question

Quizplus · Accepted Answer

The belief that a division with higher sales must have derived more benefit from advertising costs than a division with lower sales is an example of the benefit received criteria for cost allocation decisions. This criteria states that costs should be allocated to the divisions or departments that received the most benefit from the expenditure.

The Belief That a Corporate Division with Higher Sales Ought