The Dual-Rate Cost-Allocation Method Classifies Costs in Each Cost Pool

question 116

Multiple Choice

The dual-rate cost-allocation method classifies costs in each cost pool into a:

• A)budgeted-cost pool and an actual-cost pool
• B)variable-cost pool and a fixed-cost pool
• C)used-capacity-cost pool and a practical-capacity-cost pool
• D)direct-cost pool and a reciprocal-cost pool

---

Definitions:

Lean Production Process

A methodology aimed at minimizing waste and maximizing productivity in the manufacturing sector without sacrificing quality.

Cross-Trained

Cross-trained refers to individuals who have been trained in multiple skills or job functions, allowing for greater flexibility in staffing and operations.

Direct Labor

The labor costs directly associated with the production of goods or services.

Process Costing

A method of costing used primarily in manufacturing where costs are allocated to batches or production runs, making it easier to determine the cost per unit.