Resource Consumption Accounting (RCA)employs an Allocation Procedure Akin to a Dual-Rate

question 8

Multiple Choice

Resource consumption accounting (RCA) employs an allocation procedure akin to a dual-rate system.For each cost/resource pool, cost assignment rates

• A)for fixed costs are based on actual quantity, while rates for variable costs are based on budgeted quantities.
• B)for fixed costs are based on practical capacity supplied, while rates for variable costs are based on actual quantities.
• C)for fixed and variable costs are based on actual output quantities.
• D)for fixed and variable costs are based on budgeted quantities.
• E)for fixed costs are based on practical capacity supplied, while rates for variable costs are based on budgeted quantities.

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Definitions:

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