The most likely reason for allocating all corporate costs to divisions include that:
A)division managers make decisions that ultimately control corporate costs
B)divisions receive benefits from all corporate costs
C)the hierarchy of costs promotes cost management
D)it is best to use multiple cost objects

Question

Quizplus · Accepted Answer

Allocating corporate costs to divisions is often justified by the idea that divisions benefit from the services and support provided by corporate functions, and thus should bear a share of those costs.

The Most Likely Reason for Allocating All Corporate Costs to Divisions