When allocations are based on ________ usage,user divisions will not know their fixed-cost allocations until the end of the budget period.
A)actual
B)budgeted
C)estimated
D)historic

Question

Quizplus · Accepted Answer

When allocations are based on actual usage, the fixed-cost allocations cannot be determined until after the end of the budget period, as the actual usage data is needed for the calculation. This is in contrast to budgeted or estimated usage, where the fixed-cost allocations can be determined in advance based on the budget or estimated usage levels. Therefore, option A is the best choice.

When Allocations Are Based on ________ Usage,user Divisions Will Not