Allocation of Corporate-Sustaining Costs Is Useful for Which of the Following

question 151

Multiple Choice

Allocation of corporate-sustaining costs is useful for which of the following?

• A) evaluating the performance of salespersons with individual customer accounts
• B) motivating distribution-channel management
• C) focusing on the cause-and-effect relationships with the cost-allocation bases
• D) motivating division managers to examine how corporate costs are planned and controlled

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Definitions:

Income Taxes

Taxes levied by governments on individuals or entities' income, varying widely in rates and structures across jurisdictions.

Import Duties

Taxes imposed by a government on goods and services imported into its territory to regulate trade and raise revenue.

Transfer Pricing

The pricing of goods, services, and intangibles between affiliated entities that may cross international borders, often used to allocate income among different tax jurisdictions.

Transfer Price

The cost at which products and services are exchanged between departments within the same organization.