Which of the following is true about filters and User Defined Attribute (UDA)?

Using filters provides more flexibility in allocation because they allow users to define and apply specific criteria that determine how data is included or excluded in calculations. Filters can help narrow down the scope of analysis by focusing on certain segments of data, which can lead to more tailored and accurate allocation of costs. This flexibility is particularly beneficial when working with complex datasets where precise targeting of data points is essential for effective analysis.

In contrast, the other statements regarding User Defined Attributes (UDAs) do not accurately reflect their functionality. For example, UDAs can indeed be applied to lower-level members, and they can also be used in conjunction with parent members as part of the overall data hierarchy. Filters are essential in enhancing the capability of allocation rules by offering users the means to customize their data handling processes.