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Select two weaknesses that are included in Brison's proposal. A. The...

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Accounting

Select two weaknesses that are included in Brison's proposal.
A.
The proposal may give rise to disputes over the definition and valuation of "identifiable assets."
B.
The new allocation method may promote dysfunctional decision making. May encourage division managers to lease or rent assets rather than to purchase assets, even where it is economical for Fantastic Snacks to purchase them.
C.
The use of budgeted amounts in the allocation bases means that division managers do not know cost allocation consequences of their decisions until the end of each reporting period.
D.
The new allocation method is relatively complex. A lot of additional information is needed beyond what is already available.

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