Vera Davies, controller of Cantiey Oil Company, is preparing a presentation to senior executives about the performance of its four divisions. Summary data (dollar amounts in millions) related to the four divisions for the most recent year are as follows: (Click the icon to view the summary data.) Under the existing accounting system, costs incurred at corporate headquarters are collected in a single cost pool ($3,100 million in the most recent year) and allocated to each division on the basis of its actual revenues. The top managers in each division share in a division-income bonus pool. Division income is defined as operating income less alocated corporate costs. Davies has analyzed the components of corporate costs and proposes that corporate costs be collected in four cost pools. The components of corporate costs for the most recent year (dollar amounts in millions) and Davies' suggested cost pools and allocation bases are as follows Read the requirements. Requirement 1. Select two reasons why Cantley Oil should allocate corporate costs to each division. (Select all that apply.) EClick the icon to view the suggested cost pools and allocation bases.) A. To provide information for economic decisions. Data Table B. To determine the likelihood of customer retention. C. D. To quantify the potential for sales growth. Income measurement for external parties. DIVISIONS Oil and Gas Oil and Gas Copper Upstream Downstream Products Mining Total Revenues Operating Costs Operating Income 8,000 $ 2,900 5,100 $ 6,800 $ 5,400 4,400 $40,000 4,800 (400) $ 20,800 S 19,400 32,500 1,400 S 1,400 $ 7,500 Click to select your answer(s) and then click Check Answer Identifiable asset:s 16,820 S 6,380 $ 3,190 S 2,610 S29,000 Number of employees 11,200 18,400 7,600 2,800 40,000 ars