Question Details

Full allocation of corporate costs to divisions 


TRUE/FALSE
1.	The ability-to-bear criterion is considered superior when the purpose of cost allocation is motivation.

	
2.	The benefits of implementing a more-complex cost allocation system are relatively easy to quantify for application of the cost-benefit approach.

	
3.	Each company must decide which corporate cost categories should be included in the indirect costs of the divisions -- all, only a subset, or none.

		
4.	Full allocation of corporate costs to divisions is justified when the notion of controllability is applied.

	
5.	When there is a lesser degree of homogeneity, fewer cost pools are required to accurately explain the use of company resources.




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