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Under the Stand-Alone Method of Allocating Common Costs

Question 39

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Under the stand-alone method of allocating common costs


A) a ranking is used to allocate costs among the users.
B) disputes can arise over who is the primary user.
C) each party bears a proportionate share of the total costs in relation to their individual stand-alone costs.
D) an incentive is created to be the first-ranked user.
E) the parties are interested in being viewed as primary users.

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