Benefits of the single-rate method include:
A)it is easier to calculate
B)fixed costs that are transformed into variable costs for user decision making
C)signals regarding how variable and fixed costs behave differently
D)information that leads to outsourcing decisions that benefit the organization as a whole

Question

Quizplus · Accepted Answer

The single-rate method is easier to calculate compared to the dual-rate method since it considers both fixed and variable costs as a single pool. This means that there is no need to separate the costs into fixed and variable components, making the process less complex and time-consuming. Therefore, the benefit of the single-rate method is that it simplifies the cost allocation process. However, the other options, B, C, and D, are not benefits of the single-rate method. Option B refers to the dual-rate method, which transforms fixed costs into variable costs for user decision making. Option C refers to cost behavior analysis, which is not specific to any cost allocation method. Option D refers to outsourcing decisions, which are not directly related to cost allocation methods.

Benefits of the Single-Rate Method Include