Under Dual-Cost Allocation, Fixed Costs Are Allocated on the Basis

question 36

Multiple Choice

Under dual-cost allocation, fixed costs are allocated on the basis of a user department's:

• A) long-run usage of a service department's output.
• B) short-run usage of a service department's output.
• C) long-run usage and short-run usage of a service department's output.
• D) neither long-run usage nor short-run usage of a service department's output.
• E) either long-run usage or short-run usage of a service department's output.

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Definitions:

General Ledger

A comprehensive accounting record of all financial transactions of a company, organized by account.