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.

Identify the disadvantages of allocating common costs to responsibility centers.(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• Allocation of common fixed costs results in changes to profits that are not related to the operation of the responsibility center.
• unanswered
• Common fixed costs are not under the control of responsibility managers.
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• Common fixed costs are under the control of responsibility managers.
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• Because common fixed costs do not change when a business center is eliminated, inclusion in the business center responsibility margin could distort decision making.
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• Because common fixed costs change when a business center is eliminated, inclusion in the business center responsibility margin could distort decision making.
• unanswered