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Several Characteristics That May Apply to Single-Rate Allocation (S), Dual-Rate

Question 122

Short Answer

Several characteristics that may apply to single-rate allocation (S), dual-rate allocation (D), both (B), or neither (N)are listed below. Indicate, with the appropriate letter, which term applies to each characteristic.
____ 1. Can be applied using the direct method
____ 2. Cost drivers identified for variable cost pools
____ 3. May lead to mismeasurement because of cost behaviour classification
____ 4. May mismeasure support resources used
____ 5. More costly to develop and maintain
____ 6. Reciprocal method may be used for allocations
____ 7. Support costs separated into product and period cost pools
____ 8. Uses one allocation base to allocate support costs

Correct Answer:

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1. B
2. D
...

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