No standard rule identifies the best basis of allocating expenses across departments, so it is impossible to allocate costs in a manner that will be perceived as fair.

Question

Quizplus · Accepted Answer

While there is no single standard rule, various methods like direct allocation, step-down, and activity-based costing can be used to allocate expenses fairly based on the specific context and goals of the organization.

No Standard Rule Identifies the Best Basis of Allocating Expenses