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  3. Study Set
    Cost Accounting Study Set 1
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    Exam 14: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
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    The Most Likely Reason for Allocating All Corporate Costs to Divisions
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The Most Likely Reason for Allocating All Corporate Costs to Divisions

Question 1

Question 1

Multiple Choice

The most likely reason for allocating all corporate costs to divisions include that:


A) division managers make decisions that ultimately control corporate costs
B) divisions receive benefits from all corporate costs
C) the hierarchy of costs promotes cost management
D) it is best to use multiple cost objects

Correct Answer:

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