Assume the multiplier method is used and the multiplier is determined to be 3 based on experience.Accounting records show that the measured external failure costs are $500,000.What would be the estimated total external failure costs?
A)$55,556
B)$166,667
C)$1,500,000
D)$4,500,000

Question

Quizplus · Accepted Answer

The estimated total external failure costs would be the measured external failure costs multiplied by the multiplier, which is $500,000 * 3 = $1,500,000.

Assume the Multiplier Method Is Used and the Multiplier Is