. Segment managers must be aware of the common costs that are present. An argument against the allocation of common costs is that the costs of the programs would be overstated and their margins understated. With that, some programs might be unfeasible and managers might decide to eliminate the program.Profit of the organization would decrease through the amount of segment margin in case a program is eliminated because of the existence arbitrarily allocation common costs.As there is no cause and effect relationship between the common costs and the programs allocation among the programs must be arbitrary.