The dual-rate cost-allocation method provides better information for decision making than the single-rate method.

Question

Quizplus · Accepted Answer

The dual-rate cost-allocation method separates fixed and variable costs, which can provide more accurate information for decision making than the single-rate method that only uses one predetermined rate for all costs. By separating fixed and variable costs, managers can make better-informed decisions on how to allocate resources and adjust their cost structure.

The Dual-Rate Cost-Allocation Method Provides Better Information for Decision Making