The stand-alone method of allocating determines the weights for cost allocation by considering each user of the cost as a separate entity.

Question

Quizplus · Accepted Answer

The statement is true. The stand-alone method of allocating costs assigns the full cost of a resource to each user based on their individual usage or consumption of the resource. This method often results in higher costs for users who consume more of the resource, and it is commonly used in situations where it is difficult to identify a relationship between usage and the specific cost being allocated.

The Stand-Alone Method of Allocating Determines the Weights for Cost