Why Do Some Managers in Organizations Deduct Facility-Sustaining Costs as a Separate

question 36

Essay

Why do some managers in organizations deduct facility-sustaining costs as a separate lump-sum amount from operating income rather than allocate them to products?

---

Definitions:

Scientific Method

Method of investigation that uses the objective and systematic collection and analysis of empirical data to test theories and hypotheses.

Empirical Data

Information obtained through observation or experimentation that is used as a basis for inference or reasoning.

Systematic Collection

The organized gathering of data according to a defined process that follows a specific pattern or protocol.

Communicating Findings

The process of sharing the results of an analysis or research study with stakeholders or the scientific community.