Which of the following is an example of division-sustaining costs?
A) research and development cost
B) corporate administration costs
C) corporate brand advertising
D) shipment costs

Question

Quizplus · Accepted Answer

Research and development costs are considered division-sustaining costs because they are directly tied to the development and improvement of a particular product or service within the division. The other options (B, C, and D) are considered division-neutral or even division-disrupting costs, as they are not directly tied to the performance or development of the division's product or service.

Which of the Following Is an Example of Division-Sustaining Costs