Explain One Problem That Could Arise When Allocated Costs Are

question 40

Essay

Explain one problem that could arise when allocated costs are used to charge other departments for support services.

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Definitions:

Discrete Probability Distributions

Probability distributions that deal with discrete random variables, quantifying the probabilities of different outcomes.

Continuous Probability Density Functions

Mathematical functions that describe the likelihood of all possible values of a continuous random variable.

Z-score

A numerical indicator that shows how a value compares to the average of a set of values, expressed as the number of standard deviations away from the mean.

Normally Distributed

A type of continuous probability distribution for a real-valued random variable, characterized by a symmetric bell-shaped curve.