While Allocating Corporate Costs to Divisions ________

question 56

Multiple Choice

While allocating corporate costs to divisions ________.

• A) only fixed costs should be allocated
• B) no homogeneous cost pools should be constructed
• C) all the costs in the cost pool should not have the same or a similar cause-and-effect or benefits-received relationship with the cost-allocation base
• D) allocate both variable and fixed costs to divisions and then to customers

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