Because the process of measuring and allocating support costs is uncertain and requires judgment:
A) Managers should not allocate costs to individual units of product
B) Managers should use information technology as much as possible to eliminate the need for judgment
C) Allocated support cost information can be of low quality
D) Allocated support cost information cannot be used for cost-based contracts

Question

Quizplus · Accepted Answer

The process of measuring and allocating support costs is subjective and involves various assumptions and estimates. As a result, the quality of the allocated support cost information can be low, leading to misleading decisions if relied upon solely. Therefore, managers should be cautious when using allocated support costs information, and should complement it with other cost information where possible.

Because the Process of Measuring and Allocating Support Costs Is