Which is the preferred allocation method for performance evaluation?
A)allocating all corporate costs
B)allocating only human resource cost
C)allocating controllable costs
D)allocating uncontrollable costs

Question

Quizplus · Accepted Answer

Allocating controllable costs is the preferred method for performance evaluation as it focuses on the costs that can be influenced or controlled by the specific department or individual being evaluated. This method provides a more accurate reflection of their performance and allows for targeted improvements to be made. Allocating all corporate costs or only human resource costs may not accurately reflect the department's or individual's performance, and allocating uncontrollable costs may not be fair or appropriate for performance evaluation.

Which Is the Preferred Allocation Method for Performance Evaluation