Question 1
When corporate-sustaining costs are fully allocated to distribution channels, then the sum of the operating income from each distribution-channel is ________.
◦ greater than company wide operating income
◦ equal to company wide operating income
◦ equal to customer-level operating income
◦ greater than customer-level operating income
Question 2
Which of the following is a corporate-sustaining cost?
◦ design costs
◦ corporate brand advertising
◦ shipment costs
◦ research and development costs