Question

A sharing arrangement in which only deductible costs are apportioned to the investor, with the sponsor bearing all capitalized costs is called

Answer 1

D) functional allocation

Step-by-step explanation:

These are the options for the question;

A) overriding royalty arrangement.

B) reversionary sharing arrangement.

C) carried interest.

D) functional allocation.

A sharing arrangement in which only deductible costs are apportioned to the investor, with the sponsor bearing all capitalized costs is called functional allocation.

functional allocation in management involves the act in which employee are grouped in departments according to skills possessed by them or area they specialize in, and these department are been managed by functional leader.. It is very important in business for employees to give their best during production.