Which of the Following Is True of Corporate-Sustaining Costs

question 109

Multiple Choice

Which of the following is true of corporate-sustaining costs?

• A) are common to all individual customers
• B) have a clear cause-and-effect relationship with several cost-allocation bases
• C) should be allocated for decisions regarding reducing customer costs
• D) evaluates the effectiveness of sales personnel

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Definitions:

Endowment Effect

The tendency for people to value something more highly simply because they own it.

Behavioral Economics

A field of economics that studies how psychological, social, cognitive, and emotional factors affect the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.

Availability Heuristic

An intellectual simplification employed when the examples readily thought of are used to assess a particular matter, notion, method, or judgement.

Time Inconsistency

is a situation where a person's preferences change over time, such that what they choose today may differ from what they will choose in the future, often leading to decision-making challenges.