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Identify the disadvantages of allocating common costs

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Reference no: EM132959390

Janice Black, manager of the Produce Department at Spanky's Grocery, has a monthly responsibility margin of $4,000. The store manager has decided to allocate storewide common costs to each department. After the allocation, Ms. Black's responsibility margin is -$1,200 per month.

Problem 1: Identify the disadvantages of allocating common costs to responsibility centers.

Reference no: EM132959390

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