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:

Variable Cost

A cost that varies with the level of output or production activity.

Marginal Product

The marginal product is the additional output gained by employing one more unit of input, such as labor, in the production process.

Bouquets

Arrangements of flowers, often decorative and used as gifts or for special occasions.

Florist

A professional or business that specializes in the arrangement and sale of flowers and floral displays.