Managers need to clarify their reasons for allocating support department costs before establishing cost pools.

Question

Quizplus · Accepted Answer

It is important for managers to understand and communicate the reasons behind their allocation of support department costs before creating cost pools. This can help ensure that the costs are allocated in a fair and effective manner, and that the resulting information can be used to make informed decisions about the business.

Managers Need to Clarify Their Reasons for Allocating Support Department