The method that allocates costs in each cost pool using the same rate per unit is known as the
A)incremental cost allocation method.
B)reciprocal cost allocation method.
C)single-rate cost allocation method.
D)dual-rate cost allocation method.
E)homogeneous cost allocation method.

Question

Quizplus · Accepted Answer

The method that allocates costs in each cost pool using the same rate per unit is known as the single-rate cost allocation method. This method is simple and easy to understand, and it allocates costs based on a single activity or cost driver, which can help to simplify the allocation process. However, it may not take into account differences in the level of activity or complexity of different cost pools.

The Method That Allocates Costs in Each Cost Pool Using