The Most Likely Reason for NOT Allocating Corporate Costs to Divisions

question 102

Multiple Choice

The most likely reason for NOT allocating corporate costs to divisions include that:

• A)these costs are not controllable by division managers
• B)these costs are incurred to support division activities, not corporate activities
• C)division resources are already used to attain corporate goals
• D)divisions receive no benefits from corporate costs

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Definitions:

Supply Chain Profit

The total profit achieved by all members of a supply chain, from raw material suppliers to end retailers, through the production and sale of goods.

Pricing Decisions

The process of determining the price at which a company's products or services will be offered to the market, affecting demand, sales, and profitability.

Maximizing Profit

The process of implementing strategies and making decisions that lead to the highest possible profit margin.

Lot Sizing Decisions

The process of determining the optimal order quantity that balances ordering costs with holding costs in inventory management.