A problem with charging other departments for allocated support costs is:
I. The charge is often perceived to be very high
II. Support services are likely to be underused
III. Other departments may choose to replicate or outsource internal services
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Charging other departments for allocated support costs can lead to perceptions of high charges, underuse of support services due to cost avoidance, and incentivize departments to replicate or outsource services to control costs or improve efficiency.

A Problem with Charging Other Departments for Allocated Support Costs