Corporate administrative costs allocated to a division cost pool are MOST likely to be:
A)output unit-level costs.
B)product-sustaining costs.
C)organisation-sustaining costs.
D)batch-level costs.

Question

Quizplus · Accepted Answer

Corporate administrative costs are generally incurred to support the overall organization and are not specific to any particular product or batch. Therefore, they are most likely to be classified as organization-sustaining costs, which are costs that support the overall functioning of an organization, rather than specific products or activities.

Corporate Administrative Costs Allocated to a Division Cost Pool Are