The method that determines the weights for cost allocation by considering each user of the cost as a separate entity is:
A)first-in,first-out.
B)weighted average.
C)joint-cost allocation.
D)stand-alone cost-allocation.
E)incremental cost-allocation.

Question

Quizplus · Accepted Answer

The method that considers each user of the cost as a separate entity is called stand-alone cost-allocation. This method is based on the idea that each user should only pay for the specific costs that are directly associated with the services or products they receive. This approach is often used in situations where the costs are clearly identifiable and can be easily assigned to specific users. Therefore, stand-alone cost-allocation is the best choice for this scenario.

The Method That Determines the Weights for Cost Allocation by Considering