What Might Explain Why Some Managers Advocate Fully Allocating All

question 120

Multiple Choice

What might explain why some managers advocate fully allocating all costs, including corporate costs to distribution channels and to customers?

• A) all costs are incurred to support sales of products to customers
• B) division managers can influence and control corporate costs
• C) distribution channel managers can control corporate costs
• D) all costs need to be considered to conduct adequate variance analysis

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Definitions:

Cardiac Tamponade

A medical condition where fluid accumulates in the pericardium (the sac around the heart), leading to decreased heart function.

Pleural Cavity

The slim, fluid-filled gap located between the two pleural layers surrounding each lung, which plays a role in the mechanics of breathing.

Pericardial Sac

A double-walled sac containing the heart and the roots of the great vessels, providing protection against infection and supplying lubrication for the heart.

Myocardium

The thick middle layer of the heart wall composed of cardiac muscle cells; responsible for the heart's contractile activity.