Sunday, May 27, 2012

Under the dual-rate cost-allocation method, when fixed costs are allocated based on actual usage then

ACCOUNTING

Multiple Choice

Under the dual-rate cost-allocation method, when fixed costs are allocated based on actual usage then

a. user-division managers are motivated to make accurate long-run usage forecasts.

b. user-division managers can better plan for the short-run and for the long-run.

c. the costs of unused capacity are highlighted.

d. variations in one division’s usage affect another division’s allocation.

Click here for the SOLUTION

No comments:

Post a Comment