NOT Allocating Some Corporate Costs to Divisions and Products Results

question 38

Multiple Choice

NOT allocating some corporate costs to divisions and products results in which of the following?

• A) an increase in overall corporate profitability
• B) the sum of individual product profitability being less than overall company profitability
• C) the sum of individual product profitability being greater than overall company profitability
• D) a decrease in overall corporate profitability

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Definitions:

Realized Return

The actual gain or loss experienced on an investment, calculated by taking the difference between the selling price and the purchase price.

Term Life

Term life is a type of life insurance policy that provides coverage at a fixed rate of payments for a limited period, known as the relevant term.

Death Benefit

The sum paid to a beneficiary upon the insured’s death, provided through a life insurance policy.

Savings Plan

A program that encourages regular saving by setting aside a certain amount of income for future use, often with tax advantages or interest accrual.