Companies that want to calculate the full cost of products must allocate all corporate costs to divisions.

Question

Quizplus · Accepted Answer

When calculating the full cost of a product, all corporate costs must be allocated to the divisions in order to accurately determine the costs associated with producing and selling the product. This includes overhead costs such as marketing, research and development, and administrative expenses. By allocating these costs to the appropriate divisions, companies can determine the true cost of their products and make informed decisions about pricing and profitability.

Companies That Want to Calculate the Full Cost of Products