An example of why a manager would perform cost allocations for economic decisions would be to cost inventories for reporting to the tax authorities.

Name: An example of why a manager would perform cost allocations for economic decisions would be to cost inventories for reporting to the tax authorities.
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An example would be to use cost allocations to decide on the selling price for a product or a service. Another example would be to decide whether to add a new product or service.

An Example of Why a Manager Would Perform Cost Allocations