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Why Do Managers Care About the Costs Allocated to Their

question 17

Short Answer

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.


Definitions:

Observational Learning

Learning that occurs by observing the behavior of others and the outcomes of those behaviors, without direct experience.

Gender-Role

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A concept in psychology that classifies traits or behaviors traditionally associated with men or women, often used in studies of gender roles and identity.

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The set of societal norms dictating what types of behaviors are considered acceptable, appropriate, or desirable for a person based on their actual or perceived sex.

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