Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 14 - Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis - Assignment Material - Questions - Page 578: 14-8

Answer

Managers use cost-allocation criteria like cause-and-effect, benefits received, fairness, and ability to bear. The dominant criteria can vary based on specific goals and circumstances. Cause-and-effect and benefits received are common for efficiency and alignment with strategy, while fairness may be important for addressing sensitivities.

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