The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as __________?
Correct answer: C. stand-alone cost allocation method
- A. bundled products allocation method
- B. variable cost allocation method
- C. stand-alone cost allocation method
- D. incremental cost allocation method
Explanation
The stand-alone cost allocation method treats each user as a separate entity and uses that user's independent cost to determine the allocation weight. Incremental allocation, in contrast, depends on a ranking of users.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as ___________?
The products, divisions and customers are the examples of ___________?
The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as _________?
Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be ____________?
The method which allocates the cost of support department to only operating departments is called ___________?
The second ranked product in incremental revenue allocation method is termed as __________?