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:

Unexpected Factors

External or unforeseen elements that can impact outcomes in various contexts, including economic conditions, natural disasters, or social changes.

Corporate Stock

Ownership shares in a corporation, representing a claim on part of the corporation's assets and earnings.

Single Corporation

An individual business entity recognized by law as separate from its owners, possessing rights and responsibilities.

Same Industry

Pertains to businesses or entities that operate within the same sector or category of the economy, producing similar goods or services.