When the ___________ method is used,cost-allocation bases must be chosen for both the variable-cost and fixed-cost pools.
A)single-rate
B)piece-rate
C)dual-rate
D)activity-rate

Question

Quizplus · Accepted Answer

When using the dual-rate method, cost-allocation bases must be chosen for both the variable-cost and fixed-cost pools. This method distinguishes between variable and fixed costs and applies different allocation rates to each pool, leading to more accurate cost allocation. This makes it the best choice for allocating costs when there are a mix of fixed and variable costs involved.

When the ___________ Method Is Used,cost-Allocation Bases Must Be Chosen