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    Introduction to Management Accounting Study Set 1
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    Exam 12: Cost Allocation
  5. Question
    Allocating Fixed Costs Based on Long-Range Plans May Inadvertently Result
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Allocating Fixed Costs Based on Long-Range Plans May Inadvertently Result

Question 22

Question 22

Multiple Choice

Allocating fixed costs based on long-range plans may inadvertently result in a tendency of mangers to ________.


A) underutilize available capacity
B) overestimate planned usage
C) underestimate planned usage
D) overestimate planned costs

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