Abstract
In this paper, we examine the conflicts that arise when multiple users share a common facility. The conflicts could arise at three levels: (a) between the individual users and the division manager, (b) among the divisions (or different classes) that use the facility, and (c) between the divisions and the headquarters in the presence of private information. We analyze these conflicts and outline the role of cost allocation mechanisms and thereby account for congestion in each of these situations. The results of this paper demonstrate the usefulness of resolving these conflicts in an organization, and hence has direct managerial accounting implications.
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