Generally, It Does Not Matter How Cost Allocations Are Designed

question 137

True/False

Generally, it does not matter how cost allocations are designed and explained, because most managers do not care whether the allocations appear to be fair or not.

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Definitions:

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.

Adam Smith

A Scottish economist and philosopher, known as the "father of modern economics" for his influential works on the nature and causes of the wealth of nations, promoting the idea of free market economies.