Cost allocation of shared facilities cost is intended to remind managers of:
A)The cost of using a shared resource.
B)Both the cost and value of using shared resources.
C)How much capacity a firm has.
D)Why the firm invests in these facilities.
E)How dependent the managers are for these facilities.

Question

Quizplus · Accepted Answer

Cost allocation of shared facilities cost is not only intended to remind managers of the cost of using a shared resource, but also the value that it brings to the organization as a whole. By allocating costs fairly and accurately, managers can make informed decisions about the optimal use of shared resources and ensure that they are using them efficiently. This also helps to avoid overuse or underuse of shared facilities, which can lead to unnecessary expenses or capacity constraints.

Cost Allocation of Shared Facilities Cost Is Intended to Remind