In general, allocating fixed cost is less challenging than allocating variable cost.

Question

Quizplus · Accepted Answer

Allocating variable costs is generally less challenging because they are directly tied to specific activities or products, making it easier to determine where they should be allocated. Fixed costs, however, do not vary with production or sales levels, making it more difficult to decide how to allocate them accurately across products or departments.

In General, Allocating Fixed Cost Is Less Challenging Than Allocating