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

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Definitions:

Peripheral Nervous

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the central nervous system (CNS) to limbs and organs.

Intravenous Injection

The administration of liquid substances directly into a vein through a syringe, allowing for rapid absorption into the bloodstream.

Xenophobic

Having an intense or irrational dislike or fear of people from other countries.

Tobacco Use

The act of consuming tobacco products, such as cigarettes, cigars, or chewing tobacco, which poses significant health risks.