If a territory is abandoned,some of the costs previously allocated to it must now be borne by other districts,and this may make a formerly profitable territory now show a loss.

Question

Quizplus · Accepted Answer

When a territory is abandoned, the costs previously allocated to it are no longer covered by the sales in that territory. This means those costs must now be covered by the remaining districts, which can cause them to show a loss.

If a Territory Is Abandoned,some of the Costs Previously Allocated