Which of the Following Statements Best Describes Cost Allocation

Multiple Choice

Which of the following statements best describes cost allocation?

A) A company can maximize or minimize total company income by selecting different bases on which to allocate indirect costs.
B) A company should select an allocation base to raise or lower reported income on given products.
C) A company's total income will remain unchanged no matter how indirect costs are allocated.
D) A company,as a general rule,should allocate indirect costs randomly or based on an "ability-to-bear" criterion.