Under the incremental method,the _________ party typically receives the highest allocation of the common costs.

Question

Quizplus · Accepted Answer

Under the incremental method, the primary party typically receives the highest allocation of common costs. This is because the primary party is the one whose activity or presence drives the need for the cost, and therefore bears the greatest responsibility for it. The first incremental party, second incremental party, and tertiary party receive decreasing amounts of cost allocation in that order.

Under the Incremental Method,the _________ Party Typically Receives the Highest