Support department cost allocation method which makes no difference between variable and fixed costs is classified as ___________?
Correct answer: C. single rate cost allocation method
- A. sales mix allocation method
- B. dual-rate cost-allocation method
- C. single rate cost allocation method
- D. quantity variance allocation methodHire An Accountant
Explanation
The single-rate cost-allocation method combines fixed and variable support costs into one pool and applies one rate. The dual-rate method keeps these two cost categories separate.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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