Which Corporate Costs Should Be Allocated to Divisions

question 136

Multiple Choice

Which corporate costs should be allocated to divisions?

• A) costs incurred to process orders
• B) cost related to homogeneous cost pools only
• C) product-handling costs
• D) both fixed and variable costs

---

Definitions:

Axiological Arrest

Reduced level of morality that occurs if one fails to know, cherish, declare, act, and act habitually according to one’s values. Axiology is the branch of philosophy concerned with the study of values.

Adaptive Capacity

The ability of individuals or systems to adjust and cope with changes or challenges in their environment.

Cognitive Dissonance

Psychological discomfort experienced when attitudes and behavior are inconsistent.

Unfreezing

The initial phase in the change process where old habits or structures are dismantled to accept new ways of thinking.