Chapter 14 - Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis - Assignment Material - Questions - Page 578: 14-7

I agree. Allocating all corporate costs to divisions can distort their performance evaluations and hinder effective decision-making. Some corporate costs may not be controllable or relevant at the divisional level, so a more selective allocation approach is often preferred.

I agree. Allocating all corporate costs to divisions can distort their performance evaluations and hinder effective decision-making. Some corporate costs may not be controllable or relevant at the divisional level, so a more selective allocation approach is often preferred.