Corporate-Sustaining Costs ________

question 94

Multiple Choice

Corporate-sustaining costs ________.

• A) are common to all individual customers
• B) have a clear cause-and-effect relationship with several cost-allocation bases
• C) should be allocated for decisions regarding reducing customer costs
• D) evaluates the effectiveness of sales personnel

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, thereby providing more accurate insights into the costs associated with producing a product or service.

Indirect Costs

Costs that are not directly attributable to a specific job, product, or activity, making them difficult to trace.

Complexity

The state or quality of being intricate or complicated, often making tasks or understanding more difficult.

Machine Setup

The process of preparing a machine for a specific task or production run, including assembly, configuration, and calibration to ensure it operates correctly and efficiently.