The Most Likely Reason for Allocating All Corporate Costs to Divisions

question 1

Multiple Choice

The most likely reason for allocating all corporate costs to divisions include that:

• A)division managers make decisions that ultimately control corporate costs
• B)divisions receive benefits from all corporate costs
• C)the hierarchy of costs promotes cost management
• D)it is best to use multiple cost objects

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Definitions:

Business Invitees

Those people, such as customers or clients, who are invited onto business premises by the owner of those premises for business purposes.

Intentional Tort

A legal wrong resulting from actions undertaken with the intent to cause harm or injury.

Liable

Being legally responsible or obligated, often used in the context of bearing the consequences for actions or incurring debts.

Intended

Planned or meant; having intention or purpose.