The Practice of Using Only One Base to Allocate Both

question 28

Multiple Choice

The practice of using only one base to allocate both fixed and variable costs is called:

• A) Single-rate allocation
• B) Activity-based allocation
• C) Budgeted allocation
• D) Direct allocation

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Definitions:

Middleman

An intermediary or agent between producers and consumers who facilitates transactions or the distribution of products.

End-User Markets

Markets consisting of individuals or organizations that are the final consumers of products and services, using them for their own use.

Wholesaler

A person or company that sells goods in large quantities at low prices to retailers, rather than selling them directly to consumers.

Intermediaries

Entities that facilitate transactions or interactions between two or more parties in a supply chain, often involved in the distribution, wholesaling, and retailing of goods.