Question

To allocate corporate costs to divisions, the ideal situation would be for the allocation base to?

Answer 1

To allocate corporate costs to divisions, the ideal situation would be for the allocation base to have the best cause-and-effect relationship with the costs.

Corporate overhead is constructed from the costs incurred to run the executive facet of an enterprise. those prices encompass the accounting, human sources, felony, marketing, and sales features. Whilst corporate costs are incurred, they're considered to be period charges, and so are charged to cost as incurred.

Overhead expenses are extraordinary from working fees, together with raw materials or employee wages, that are directly related to a company's services and products. Corporate costs may additionally track overhead and other fees to determine their destroy-even factors and perceive approaches to cut costs.

Commercial enterprise prices may also be called deductions. In widespread, organizations have some limitations and unique concerns for enterprise fee deductions. they may be commonly divided into corporate costs and operational costs.

Learn more about corporate costs here brainly.com/question/25109150

#SPJ4