Under dual cost allocation, fixed costs are allocated based on the user departments of the support department's output:
A) long-run average usage.
B) short-run usage.
C) long-run usage and short-run usage.
D) forecasted short-run usage.

Question

Quizplus · Accepted Answer

Under dual cost allocation, fixed costs are typically allocated based on long-run average usage to ensure stability and fairness in cost distribution over time.

Under Dual Cost Allocation, Fixed Costs Are Allocated Based on the User