If a company decides not to allocate some or all corporate,division or channel costs,it results in total company profitability being less than the sum of the profitability of individual:

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When a company decides not to allocate some or all corporate, division, or channel costs, it affects the calculation of profitability at the customer level. This is because the unallocated costs can lead to an underestimation of the total costs associated with serving each customer, thereby inflating the profitability figures for individual customers when compared to the company's overall profitability.

If a Company Decides Not to Allocate Some or All