Allocations of Corporate Headquarters Expenses to Divisions Used in Return

question 46

True/False

Allocations of corporate headquarters expenses to divisions used in return on investment calculations should be limited to the cost of those actual services provided by central headquarters,which the divisions otherwise would have to provide for themselves.

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Definitions:

Business Products

Goods and services that are purchased for the purpose of being used in the production of other goods and services, to support daily operations or for resale.

Oral Contraceptives

Medications taken by mouth to prevent pregnancy, commonly referred to as birth control pills, which contain hormones to inhibit ovulation.

Hormonal Methods

involve the use of hormones to prevent pregnancy and can include birth control pills, patches, injections, and implants.

Premenstrual Syndrome

A collection of emotional, psychological, and physical symptoms that are linked to a woman's menstrual cycle.