Which of the following statements is(are)false regarding the effective use of management control systems?
(A)In general,single rate cost allocations should not be used in management control systems because clear control over the cost being allocated cannot be determined.
(B)The primary reason to use a dual rate allocation system is to focus a manager's performance evaluation on factors under the manager's direct control.
A) Only A is false.
B) Only B is false.
C) Both A and B are false.
D) Neither A nor B is false.

Question

Which of the following statements is(are)false regarding the effective use of management control systems? 
(A)In general,single rate cost allocations should not be used in management control systems because clear control over the cost being allocated cannot be determined.
(B)The primary reason to use a dual rate allocation system is to focus a manager's performance evaluation on factors under the manager's direct control.
A) Only A is false.
B) Only B is false.
C) Both A and B are false.
D) Neither A nor B is false.

Quizplus · Accepted Answer

Both statements are true. Single rate cost allocations can obscure control over costs, and dual rate systems help focus on controllable factors.

Which of the Following Statements Is(are)false Regarding the Effective Use