When Allocating Central Corporate Support Costs to Products,companies Often Use

question 82

Multiple Choice

When allocating central corporate support costs to products,companies often use revenues as the allocation base because ________.

• A) revenues are the cost driver
• B) revenues approximate the actual cost driver
• C) revenues represent an " ability to bear" philosophy of cost allocation
• D) revenues represent the actual usage of resources

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Definitions:

Impressive Titles

Titles or designations given to jobs, roles, or positions that are designed to evoke respect, admiration, or a high status.

Promotions

Activities, including marketing and advertising, aimed at increasing awareness, sales, or visibility of a product, service, or brand.

Reinforcers

Incentives such as awards, bonuses, promotions, gifts, and even compliments.

Incentives

Rewards or motivators provided to encourage specific actions or behaviors.