A criticism of the 'cause and effect' matching method is:
A)Not all costs attach in a discernable manner
B)The method is based upon estimates and assumptions
C)It implies that a certain amount of revenue can be attributed to a certain amount of expense
D)All of the above are criticisms

Question

Quizplus · Accepted Answer

All three statements are valid criticisms of the cause and effect matching method. Not all costs can be easily traced to specific outputs, estimates and assumptions are often necessary in determining the causal relationship between costs and revenue, and it is not always clear that a certain amount of revenue can be directly attributed to a certain amount of expense.

A Criticism of the 'Cause and Effect' Matching Method Is