The process of allocating fixed and variable costs separately is called:
A) variable cost application.
B) fixed cost separation.
C) reciprocal cost allocation.
D) dual cost allocation.

Question

Quizplus · Accepted Answer

The process of allocating fixed and variable costs separately is called dual cost allocation. This method separates fixed and variable costs so that each can be analyzed and managed separately. Option A) variable cost application and Option B) fixed cost separation are not specific to allocating fixed and variable costs separately, while Option C) reciprocal cost allocation involves the allocation of costs between different departments or areas within an organization.

The Process of Allocating Fixed and Variable Costs Separately Is