The single-rate cost-allocation method may base the denominator choice on:
A)master-budget capacity utilization
B)normal capacity utilization
C)practical capacity
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

The single-rate cost-allocation method can use any of the provided denominator choices (master-budget capacity utilization, normal capacity utilization, or practical capacity) depending on the specific circumstances and objectives of the allocation. Therefore, all the answer choices are correct. Ultimately, the best choice will depend on the specific situation and goals of the cost allocation.

The Single-Rate Cost-Allocation Method May Base the Denominator Choice On