Corporate-Sustaining Costs Should Be Allocated to ________

question 42

Multiple Choice

Corporate-sustaining costs should be allocated to ________.

• A) motivate changes in customer behavior
• B) evaluate distribution-channel managers
• C) determine the selling price that will cover all costs
• D) find the cause-and-effect relationship

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Definitions:

Demand Increase

A situation where there is a rise in consumer desire to purchase goods or services, leading to higher quantities demanded at the same price levels.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of a firm beyond normal returns.

Quantity of Resources

The total amount of inputs available for the production process, including labor, capital, land, and raw materials.