The use of actual cost rates for allocating variable costs of service departments protects the user departments from intervening price fluctuations.

Name: The use of actual cost rates for allocating variable costs of service departments protects the user departments from intervening price fluctuations.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Using actual cost rates exposes user departments to price fluctuations, as costs are allocated based on actual incurred rates, which can vary over time.

The Use of Actual Cost Rates for Allocating Variable Costs