Cost allocation of shared facilities cost is intended to remind managers of:
A) The cost of using a shared resource.
B) Both the cost and value of using shared resources.
C) How much capacity a firm has.
D) Why the firm invests in these facilities.

Question

Quizplus · Accepted Answer

Cost allocation of shared facilities cost is intended to remind managers not only of the cost of using a shared resource but also the value of using it. This helps managers make informed decisions about the allocation of resources and the pricing of products and services. Options A, C, and D do not fully capture the purpose of cost allocation of shared facilities.

Cost Allocation of Shared Facilities Cost Is Intended to Remind