If a company allocated fixed costs on the basis of long- run plans, there is a tendency on the part of managers to underestimate their planned usage.

Name: If a company allocated fixed costs on the basis of long- run plans, there is a tendency on the part of managers to underestimate their planned usage.
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Question

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Managers may underestimate planned usage to ensure they do not exceed allocated resources, leading to potential inefficiencies or resource shortages.

If a Company Allocated Fixed Costs on the Basis of Long-