Under the Dual-Rate Cost-Allocation Method, When Fixed Costs Are Allocated

question 149

Multiple Choice

Under the dual-rate cost-allocation method, when fixed costs are allocated based on actual usage then ________.

• A) user-division managers are motivated to make accurate long-run usage forecasts
• B) user-division managers can better plan for the short-run and for the long-run
• C) the costs of unused capacity are highlighted
• D) variations in one division's usage affect another division's allocation

---

Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to organizations.

Strategic Objectives

Long-term goals that an organization seeks to achieve to fulfill its mission and vision.

Organization Determination

The process by which an organization defines its intentions and establishes the strategies and actions necessary to achieve its goals.

International Human Capital

The knowledge, skills, and abilities of employees that can be leveraged globally to gain competitive advantage and operate effectively across countries.