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

Question

Quizplus · Accepted Answer

Allocation of corporate-sustaining costs can motivate division managers to examine how corporate costs are planned and controlled. This helps in identifying areas where cost reduction can occur, and in turn, helps in improving overall profitability.

Allocation of Corporate-Sustaining Costs Is Useful for Which of the Following