require that selling and administrative expenses be reported as period expenses on the income statement.

a$.$ GAAP

b$.$ FASB

c$.$ IRS

d$.$ None of these choices are correct.

Which of the following is a disadvantage of allocating selling and administrative expenses to products based on sales volume?

a$.$ Sales volume cannot be predicted.

b$.$ Products may consume activities in ways that are unrelated to their sales volumes.

c$.$ Sales volume will never properly allocate selling and administrative expenses.

d$.$ None of these choices are correct.