Unallocated costs usually include central corporate costs when evaluating a segment manager.

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Unallocated costs are costs that cannot be directly attributed to a specific product, service or department, and usually include central corporate costs, such as executive salaries or rent for shared spaces. These costs are typically allocated to different segments or departments based on a predetermined formula or allocation method. As such, they are often included when evaluating a segment manager's performance or the profitability of a business unit.

Unallocated Costs Usually Include Central Corporate Costs When Evaluating a Segment