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Author Question: For companies in which full allocation is not followed, which of the following is true of corporate ... (Read 57 times)

anshika

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Question 1

Allocation of corporate-sustaining costs is useful for which of the following?
◦ evaluating the performance of salespersons with individual customer accounts
◦ motivating distribution-channel management
◦ focusing on the cause-and-effect relationships with the cost-allocation bases
◦ motivating division managers to examine how corporate costs are planned and controlled

Question 2

For companies in which full allocation is not followed, which of the following is true of corporate sustaining costs?
◦ allocated to divisions using cause-and-effect relationship
◦ allocated to customers using cause-and-effect relationship
◦ added to aggregate operating incomes of the divisions
◦ subtracted as a lump-sum amount after aggregating operating incomes of the divisions


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Marked as best answer by anshika on Mar 6, 2021

nhea

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anshika

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Reply 2 on: Mar 6, 2021
Wow, this really help


lindahyatt42

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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