When __________ usage is the allocation base,user divisions know their allocated costs in advance.

Question

Quizplus · Accepted Answer

When budgeted usage is the allocation base, user divisions can know their allocated costs in advance since budgets are pre-determined estimates of costs and activities. Actual or estimated usage would not provide this level of certainty, and targeted usage is not a commonly used term in cost allocation.

When __________ Usage Is the Allocation Base,user Divisions Know Their