Which of the following is true about cost allocation?

A. Insulating allocations cause one managers performance to be adjusted by another managers performance.

B. When a noninsulating allocation base is used to allocate common costs, the allocation base will not fluctuate with other subunits performance.

C. Noninsulating cost allocations can reduce the risk managers bear by making planning more clear..

D. Whenever interaction is unimportant, common costs should be allocated using a base that does not insulate subunits.