What question did this study set out to answer?

The aim is to explore the dual nature of cost allocations as both a managerial tool and a tax-like mechanism on consumption.

The Costs and Benefits of Cost Allocations..

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Examines cost allocations' effects on managerial behavior, suggesting potential benefits for control and motivation.

The aim is to explore the dual nature of cost allocations as both a managerial tool and a tax-like mechanism on consumption.
Analysis of theoretical implications of cost allocations on managerial behavior
Discussion of cost allocations as proxy variables for hard-to-observe costs
Cost allocations can effectively reduce managers' consumption of perquisites
They may serve as useful tools for managerial motivation
Highlight the potential misuse and misunderstandings of cost allocations

Jerold L. Zimmerman (1979) studied this question.

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