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To Guide Cost Allocation Decisions, the Fairness or Equity Criterion

Question 40

Multiple Choice

To guide cost allocation decisions, the fairness or equity criterion ________.


A) considers reasonableness as a matter of judgment rather than an operational criterion
B) allocates cost among the beneficiaries in proportion to the benefits each receives
C) is used more frequently than any other criteria
D) is the primary criterion used in activity-based costing

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