What might explain why some managers advocate fully allocating all costs, including corporate costs to distribution...
What might explain why some managers advocate fully allocating all costs, including corporate costs to distribution channels and to customers?
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A) all costs are incurred to support sales of products to customers |
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B) division managers can influence and control corporate costs |
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C) distribution channel managers can control corporate costs |
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D) all costs need to be considered to conduct adequate variance analysis |
Homework Answers
Solution:
Managers advocate fully allocating all costs to distribution channels and to customers because all costs are incurred to support the sales of products to customers.
Hence option A is correct.
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