Reference no: EM1389814

Based on information on the Help screen for the Marketing and Admin Report (see the section on Administration Expenses), which of the following statements regarding your company's administrative costs is false?

Administrative expenses are allocated to each region based on each region's percentage of total companywide branded sales; thus, if 30% of the company's branded sales are in North America, then North America is allocated 30% of companywide administrative expenses.

Within a region, administrative expenses are allocated between online branded sales and wholesale branded sales based on their respective proportion of total branded sales in the region; thus if 80% of total branded sales in a region were to area retailers, then 80% of the region's total administrative expenses would be allocated to the wholesale segment and 20% would be allocated to the Internet segment.

No administrative expenses are allocated to private-label footwear; the company's accounting system allocates all administrative expenses to branded footwear.

Administrative costs are allocated between branded production and private-label production according to their respective percentages of total revenue generated.thus, if 55% of the company.s revenues come from branded sales then 55% of annual administrative costs are allocated to branded footwear.

The "Other Corporate Overhead" category of administrative costs always averages $1 per pair of plant capacity (not including overtime); other Corporate Overhead changes by $1 per pair in the same year as any new plant capacity comes online (new or used) and in the same year that any capacity is sold off to the merchants of used footwear-making equipment.