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Because not all costs can be traced directly to a cost object, allocating costs is a fundamental task in accounting. For example, manufacturing overhead is

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Because not all costs can be traced directly to a cost object, allocating costs is a fundamental task in accounting. For example, manufacturing overhead is allocated to products, support department costs are allocated to production departments, joint costs are allocated to joint products, etc. There are many reasons companies must be careful making decisions (such as evaluating managers, deciding what products to discontinue, etc.) when significant allocated costs are involved. Describe one reason that companies must be careful making decisions when significant allocated costs are involved

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