When Corporate-Sustaining Costs Are Fully Allocated to Distribution Channels, Then

question 124

Multiple Choice

When corporate-sustaining costs are fully allocated to distribution channels, then the sum of the operating income from each distribution-channel is ________.

• A) greater than company wide operating income
• B) equal to company wide operating income
• C) equal to customer-level operating income
• D) greater than customer-level operating income

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Definitions:

Potential Innovators

are individuals or entities that have the capacity to generate new ideas, products, or methods, often leading to significant advancements in their field.

Bootlegging Funds

The unauthorized allocation of resources or funds for projects or activities not formally sanctioned by organizations; often done covertly to pursue innovative ideas.

Management Scrutiny

The thorough and detailed review or examination of corporate management practices and performance.

Process Innovations

The implementation of new or significantly improved production or delivery methods in an organization.