For Companies in Which Full Allocation Is Not Followed, Which

question 69

Multiple Choice

For companies in which full allocation is not followed, which of the following is true of corporate sustaining costs?

• 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

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Definitions:

Discrimination

Unfair or prejudicial treatment of people based on differences such as race, gender, age, or sexual orientation.

Conditioned Stimulus

A stimulus that was neutral at first but becomes associated with an unconditioned stimulus to trigger a conditioned response after conditioning.

Generalization

A process in learning where the response is to spread from one specific stimulus to other stimuli that resemble the original.

Acquisition

The process of learning or gaining knowledge, skills, or responses through study, experience, or teaching.