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If a manager is allocated the costs of service departments based on actual costs and actual...

If a manager is allocated the costs of service departments based on actual costs and actual activity usage levels, what frustrations might the manager feel?
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If the costs of service departments are allocated based on actual costing, the manager will face fluctuations in cost allocation at regular interval. generally all company experiences change in actual level of activity at regular interval and this will have direct effect on the process of cost allocation. This will require to managers to repeat entire process of cost allocation regularly from the scratch. There will be lack of uniformity and invest of time in unproductive kind of activity. The repetition of same cost allocation process will result in to frustrations among managers. It will be better for the management to focus on normal costing based on predetermined overhead rates.

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