Which of the following is an advantage of a dual-rate method?
A) It is the most widely used method in practice.
B) It is less costly to implement.
C) It avoids the expensive analysis for categorizing costs as either fixed or variable.
D) It allocates fixed cost as per the budgeted usage that helps in short and long-run planning.

Question

Quizplus · Accepted Answer

Dual-rate method allocates fixed cost based on budgeted usage which helps in both short and long-term planning, making it an advantage of this method. Option A is incorrect because there is no evidence to suggest that this method is the most widely used. Option B is incorrect because the question does not provide enough information to support the idea that the dual-rate method is less costly than other methods. Option C is incorrect because the dual-rate method still requires the analysis of costs as fixed or variable, but it allocates fixed costs differently.

Which of the Following Is an Advantage of a Dual-Rate