Why Do Managers Care About the Costs Allocated to Their

question 32

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.

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Definitions:

Similarities

Aspects or characteristics that are alike between two or more objects, individuals, concepts, or situations.

Differences

Variances or disparities between individuals, objects, or situations, typically considered in context to highlight diversity or contrast.

Leadership Styles

Leadership styles are the various approaches to leadership that a leader can adopt, such as authoritarian, democratic, transactional, and transformational styles, each with different strategies for decision-making and team interaction.

Power

The ability or capacity to influence others' actions, beliefs, or conduct by means of authority, persuasion, or force.