For companies in which full allocation is not followed,corporate sustaining costs are ________.
A) allocated to divisions using cause-and-effect relationship
B) allocated to customers using cause-and-effect relationship
C) added to aggregate operating incomes of the divisions
D) subtracted as a lump-sum amount after aggregating operating incomes of the divisions

Question

Quizplus · Accepted Answer

Corporate sustaining costs are subtracted as a lump-sum amount after aggregating operating incomes of the divisions when full allocation is not followed.

For Companies in Which Full Allocation Is Not Followed,corporate Sustaining