When budgeted cost allocation rates are used, managers of the supplier division are motivated to improve efficiency.

Name: When budgeted cost allocation rates are used, managers of the supplier division are motivated to improve efficiency.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Budgeted cost allocation rates provide an incentive for managers to reduce their costs in order to receive a greater portion of the budgeted amounts. Therefore, they are motivated to improve their efficiency.

When Budgeted Cost Allocation Rates Are Used, Managers of the Supplier