Which Is Not a Common Method Used to Allocate Costs

question 68

Multiple Choice

Which is not a common method used to allocate costs under the departmental approach?

• A)Dual method.
• B)Step method.
• C)Reciprocal method.
• D)Direct method.

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Definitions:

Price Elastic

A measure of how much the quantity demanded of a good responds to a change in its price; high elasticity indicates a significant change in quantity with price changes.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Tax Burden

The impact of taxation on an individual or entity, often expressed as a percentage of income or revenue.