The allocation of corporate-sustaining costs is useful for:
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)None of these answers is correct.

Question

Quizplus · Accepted Answer

Corporate-sustaining costs are not directly traceable to individual products, customers, or distribution channels, making them unsuitable for evaluating performance or motivating management in specific areas.

The Allocation of Corporate-Sustaining Costs Is Useful For