Which of the following is true of corporate-sustaining costs? A) are common to all individual customers...
Which of the following is true of corporate-sustaining costs?
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A) are common to all individual customers |
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B) have a clear cause-and-effect relationship with several cost-allocation bases |
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C) should be allocated for decisions regarding reducing customer costs |
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D) evaluates the effectiveness of sales personnel |
Homework Answers
Option (A) is correct
Corporate sustaining costs are common to all individual customers. These are fixed costs and are the costs of activities to support individual customers irrespective of number of units sold to the customer. Examples are general business operations costs like rent, taxes, salaries etc.
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