Some Companies Only Allocate Corporate Costs to Divisions That Are

question 52

Multiple Choice

Some companies only allocate corporate costs to divisions that are:

• A)planned and under the control of division managers
• B)output unit-level costs
• C)perceived as causally related to division activities
• D)direct costs

---

Definitions:

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, outlining revenues, expenses, and net profit or loss.

Perpetual Inventory System

A system for managing inventory that instantly logs transactions of buying or selling inventory via computerized point-of-sale systems and software for enterprise asset management.

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Ending Inventory

The total value of goods remaining unsold at the end of an accounting period, calculated as a part of the cost of goods sold.