When designing costing systems,managers and management accountants must compare the benefits derived from allocating costs with the costs incurred in making these allocations.

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This statement is true. When designing costing systems, managers and management accountants must consider the cost-benefit analysis of allocating costs, since the benefits derived from allocating costs must outweigh the costs incurred in making these allocations. This ensures that resources are optimally utilized, and that the cost data generated is accurate and relevant for decision-making.

When Designing Costing Systems,managers and Management Accountants Must Compare the Benefits