The dual-rate cost-allocation method classifies costs in each cost pool into a:
A)direct-cost pool and a reciprocal-cost pool.
B)used-capacity-cost pool and a practical-capacity-cost pool.
C)budgeted-cost pool and an actual-cost pool.
D)variable-cost pool and a fixed-cost pool.

Question

Quizplus · Accepted Answer

The dual-rate cost-allocation method separates costs into variable and fixed cost pools, allowing for different allocation bases for each type of cost.

The Dual-Rate Cost-Allocation Method Classifies Costs in Each Cost Pool