The dual-rate method is a cost allocation approach that separates a common cost into fixed and variable components and:
A) allocates only the fixed components.
B) allocates only the variable components.
C) allocates all components with a single standard allocation base.
D) allocates each component using a different allocation base.

Question

Quizplus · Accepted Answer

The dual-rate method allocates fixed and variable components using different allocation bases, allowing for more accurate cost allocation.

The Dual-Rate Method Is a Cost Allocation Approach That Separates