The method which divides the support department cost into two dimensions such as fixed and variable cost pool is classified as ___________?
Correct answer: B. dual-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 methodCompare Credit Cards
Explanation
The dual-rate cost-allocation method creates separate fixed-cost and variable-cost pools, applying an appropriate rate to each. A single-rate method combines both types into one pool.
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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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