An advantage of the single-rate method is that it is easier and always the most accurate cost-allocation choice.

Question

Quizplus · Accepted Answer

The statement is false. The single-rate method may not always be the most accurate cost-allocation choice, as it allocates costs based on a single predetermined rate for all cost components, while the dual-rate or multiple allocation methods may better reflect differences in the cost drivers of different cost components. However, the single-rate method may be simpler to apply and easier to understand than other methods.

An Advantage of the Single-Rate Method Is That It Is