Which of the Following Would Be the Case Under the Stand-Alone

question 55

Multiple Choice

Which of the following would be the case under the stand-alone method of allocating common costs?

• A) the individual users of a cost object are ranked in the order of users least responsible for the common cost and then uses this ranking to allocate cost among those users
• B) disputes can arise over who is the primary user
• C) each party bears a proportionate share of the total costs in relation to their individual stand-alone costs
• D) the individual users of a cost object are ranked in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users

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Definitions:

Classical Stopwatch Study

A time study method where a timekeeping device is used to measure the time it takes for a worker to perform a set of tasks or operations.

Time Study

Timing a sample of a worker’s performance and using it as a basis for setting a standard time.

Labour Standards

Benchmarks or criteria used to measure the expected performance or productivity of workers within a specific time period.

Historical Experience

Refers to the information and insights gained from past events and situations that influence current decision-making or understanding.