Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 14 - Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis - Assignment Material - Questions - Page 578: 14-9

Answer

I agree. Once corporate costs are allocated to divisions, it's typically not appropriate to further allocate them to the indirect-cost pools of the division. This can complicate the allocation process and may not provide meaningful information for decision-making at the division level.

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