When budgeted fixed costs are allocated based on actual usage, user departments will not know their fixed-cost allocations until the end of the budget period.

Name: When budgeted fixed costs are allocated based on actual usage, user departments will not know their fixed-cost allocations until the end of the budget period.
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Question

Quizplus · Accepted Answer

Since the allocation is based on actual usage, departments won't know their true cost allocation until the end of the period when actual usage is known.

When Budgeted Fixed Costs Are Allocated Based on Actual Usage