Eastman kodak sponsors a car in the nascar races like other

Reference no: EM13598035

Eastman Kodak sponsors a car in the NASCAR races. Like other major corporations that sponsor sports events, Kodak believes that the public's awareness of its products is enhanced by sponsoring a NASCAR. For the right to have the car painted yellow with "Kodak" displayed prominently over the automobile, Eastman Kodak pays the racing team an annual fee in the millions of dollars.

Should NASCAR costs be allocated to the business units, and if so, what allocation scheme should be used (revenues, costs, or profits)?

Reference no: EM13598035

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