A company's CFO has instituted a new accounting system, whereby part of the facility management...

Chargeback (C) is the method of distributing facility management costs among departments based on usage.

Why use chargeback?

Encourages accountability for resource consumption.

Helps track departmental expenses efficiently.

Why not other options?

(A) Departmental distribution is a broader term.

(B) Allocation budgeting refers to pre-determined budget distribution, not based on use.

(D) Distribution costing applies more to supply chain cost allocations.