Why Do Managers Care About the Costs Allocated to Their

Multiple Choice

Why do managers care about the costs allocated to their individual departments?

A) Managers' performance evaluations frequently depend on their unit's performance more than overall firm performance.
B) The cost allocated is an integral part of the department's reported profit.
C) Carefully chosen allocation methods can induce desired behavior.
D) Carefully chosen allocation methods can dissuade undesired behavior.
E) All of the above are reasons managers care about the costs allocated to their individual departments.