NOT Allocating Some Corporate Costs to Divisions and Products Results

question 1

Multiple Choice

NOT allocating some corporate costs to divisions and products results in ________.

• A) an increase in overall corporate profitability
• B) the sum of individual product profitability being less than overall company profitability
• C) the sum of individual product profitability being greater than overall company profitability
• D) a decrease in overall corporate profitability

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Definitions:

Internal Improvements

Public works projects, such as roads and canals, intended to enhance the transportation network and economic development within a country.

Northern and Southern Railroads

Refers to the network of railroads that were developed in the Northern and Southern regions of the United States, having different infrastructure and impacts on their respective economies and ways of life.

Fewer Taxes

Implies a reduction in the amount of taxes imposed on individuals or businesses, which can affect economic behavior and investment decisions.

Market Economy

A market economy is an economic system in which supply and demand from consumers drive the production of goods and services.