In customer cost hierarchy, the costs of those activities that cannot be traced to distribution channels or individual customers are called ___________?
Correct answer: B. corporate-sustaining costs
- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. engineered resource costs
Explanation
Corporate-sustaining costs support the business as a whole and cannot be reasonably traced to a particular distribution channel or customer. They are therefore allocated at the corporate level.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
In customer cost hierarchy, the costs of individual customer support activities are classified as ____________?
The difference between actual result and corresponding amount of flexible budget, on the basis of actual level of output is classified as ____________?
In customer cost hierarchy, the cost of activities related to specific channel of distribution is classified as
Which of the following do not include among major categories of corporate costs?
The division of all the costs related to customers on the basis of different cost allocation bases or cost drivers are called ___________?
An analysis and reporting of revenues earned, and the incurred costs to earn these revenues from customers is classified as ___________?