Cost allocation can occasionally result in favoritism, with one department receiving significantly more if cost managers care for it more.
This kind of bias can also lead to a number of related problems, like rivalries, competition for resources, and the expansion of departmental requirements and ideas.
What justifies the allocation of support costs?
The management can use the important data that cost allocation provides about how costs are used to make decisions. It helps determine whether the departments or products are profitable enough to justify the costs allocated by displaying the cost objects that account for the majority of the costs.
Which procedure is used to allocate costs to the support department?
There are three ways to divide costs for the support department: the direct, the reciprocal, and the step-down. The assumptions regarding how services provided by one support department are distributed to other support departments are the primary distinctions between the methods.
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Answer:
a. Complements
b. 
Explanation:
a. Analyzing the demand equations for both products, a negative relationship between demand and price can be observed for both goods. This means that an increase in price for the cheese rounds causes a decrease in demand for bread, while an increase in price for bread causes a decrease in demand for cheese rounds. This relationship is exhibited when goods are complements.
b. The profit from each store is given by:
Total profit is given by:
The appropriate response is staffing pattern. The staffing administration design gives the organized procedures to recognize persistent needs and afterward to convey the staff assets as productively and viable as could be expected under the circumstances. A viable arrangement initially concentrates on balancing out the unit center staffing. A staffing example, or center scope, is resolved through a gauge workload and a prescribed care standard.
