When actual cost-allocations rates are used:
A)user divisions pay for costs that exceed budgeted amounts
B)managers of the supplier division are motivated to improve efficiency
C)user divisions do not know allocated amounts until the end of the accounting period
D)managers of the user divisions may be tempted to underestimate planned usage

Question

Quizplus · Accepted Answer

The Answer of When actual cost-allocations rates are used:
A)user divisions pay for costs that exceed budgeted amounts
B)managers of the supplier division are motivated to improve efficiency
C)user divisions do not know allocated amounts until the end of the accounting period
D)managers of the user divisions may be tempted to underestimate planned usage

When Actual Cost-Allocations Rates Are Used