Cost pools should be charged to responsibility centers by using:
A) budgeted amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others.
B) budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others.
C) actual amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others.
D) actual amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others.
E) some other approach.

Question

Quizplus · Accepted Answer

Using budgeted amounts for allocation bases ensures that the allocation to one responsibility center does not affect the allocations to others, promoting fairness and predictability in the allocation process.

Cost Pools Should Be Charged to Responsibility Centers by Using