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Question 1.1.(TCO 9) To guide cost allocation decisions,the cause-and-effect criterion(Points : 3)
may allocate corporate salaries todivisions based on profits.
is used less frequently than the othercriteria.
is the primary criterion used inactivity-based costing.
is a difficult criterionon which to obtainagreement.

Question 2.2.(TCO 9) Which cost-allocation criterion is superior when making aneconomic decision?(Points : 3)
Fairness-or-equity criterion
Ability-to-bear criterion
Cause-and-effectcriterion
All ofthe above