1; Consider the per-user and per-computer allocations in Figure CE21-2. a. Suppose you are the manager of
Question:
1; Consider the per-user and per-computer allocations in Figure CE21-2.
a. Suppose you are the manager of Sales, and the company is proposing to use a per-user cost allocation. Explain how you could argue that such an allocation is unfair.
b. Suppose you are the manager of Engineering, and the company is proposing to use a per-computer cost allocation. Explain how you could argue that such an allocation is unfair.
c. Suppose you are the CFO or the person designated to make the allocation method decision.
Suppose ycu have heard the arguments in parts a and
b. How would you proceed?
d. Suppose you are the manager of Sales, and you win the argument. However, management then reduces your computer budget to the new, lower level. Have you gained anything? If so, what?
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