Answer
I disagree. Allocating fixed costs based on long-run estimates may not be fair for the current period.
Work Step by Step
I disagree with the statement that fixed costs should be allocated based on estimated long-run use by user-department managers. This method can lead to bias in cost allocation. Fixed costs remain constant in the short run, and allocating them based on long-run estimates may not accurately reflect the actual cost incurred by different departments in the current period. It's better to allocate fixed costs using a more objective and fair method, such as allocating them equally or based on a different relevant factor.
