Question 1
Which of the following is true of corporate-sustaining costs?
◦ are common to all individual customers
◦ have a clear cause-and-effect relationship with several cost-allocation bases
◦ should be allocated for decisions regarding reducing customer costs
◦ evaluates the effectiveness of sales personnel
Question 2
The ability-to-bear criterion is considered superior when the purpose of cost allocation is motivation.
◦ true
◦ false