The Allocation of Corporate-Sustaining Costs Is Useful For

question 11

Multiple Choice

The allocation of corporate-sustaining costs is useful for:

• A)evaluating the performance of salespersons with individual customer accounts
• B)motivating distribution-channel management
• C)focusing on the cause-and-effect relationships with the cost-allocation bases
• D)None of these answers is correct.

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Definitions:

Open Market Operations

Open Market Operations involve the buying and selling of government securities by a central bank to control the money supply and interest rates in the economy.

Tight Monetary Policy

A central bank strategy aiming to slow economic growth by increasing interest rates and reducing the quantity of money in circulation.

Net Exports

The value of a country's total exports minus the value of its total imports, representing the trade balance.

Legal Reserve Requirement

A regulation set by central banks determining the minimum amount of reserves that must be held by a financial institution, usually a percentage of deposits.