When managers use dual-rate allocation, they frequently identify cost drivers for fixed cost pools to identify resource flows more accurately.

Name: When managers use dual-rate allocation, they frequently identify cost drivers for fixed cost pools to identify resource flows more accurately.
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Question

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Dual-rate allocation typically separates costs into fixed and variable components, but fixed costs are not usually allocated based on cost drivers, as they do not vary with activity levels.

When Managers Use Dual-Rate Allocation, They Frequently Identify Cost Drivers