Which of these is the most important difficulty in allocating functional expenses by marketing classification?
A) Some sales credited to salespeople may really be due to advertising expenditures in these markets.
B) Sales invoices may not specify geographic areas.
C) Functional accounts may be improperly considered as natural accounts.
D) The allocation of some costs may be arbitrary.

Question

Quizplus · Accepted Answer

The allocation of some costs may be arbitrary is the most important difficulty because it involves subjective decisions on how to distribute costs among different functions, which can significantly affect the accuracy and fairness of the allocation process.

Which of These Is the Most Important Difficulty in Allocating