Which of the Following Is a Drawback of Dual-Rate Allocation

question 12

Multiple Choice

Which of the following is a drawback of dual-rate allocation?
I. It introduces uncertainty about cost classification
II. It costs more to develop and maintain than single-rate allocation
III. It may cause managers to believe that all support costs are variable

• A) I and III only
• B) I and II only
• C) II and III only
• D) I, II, and III

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