Answer
Managers may prefer budgeted cost-allocation rates over actual rates for several reasons:
1. Predictability: Budgeted rates provide a predictable cost structure, allowing managers to plan and budget with more certainty.
2. Cost independence: The cost allocated to a department isn't influenced by the resource usage of other departments, giving the manager more control.
3. Insulation from inefficiencies: Inefficiencies in the providing department do not impact the costs allocated to the receiving department, shielding them from external problems.
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