Corporate overhead allocations should only be taken into account on project analysis if

Question

Quizplus · Accepted Answer

Corporate overhead allocations should not be taken into account in project analysis, regardless of whether the company is currently covering all of its allocations or not. Overhead allocations do not involve cash expenditures and are instead used to distribute the indirect costs of the company across different departments or projects. As such, including overhead allocations in project analysis can lead to incorrect cost estimates and poor decision-making.

Corporate Overhead Allocations Should Only Be Taken into Account on Project