Which of the Following Is an Advantage of a Dual-Rate

question 93

Multiple Choice

Which of the following is an advantage of a dual-rate method?

• A) It is the most widely used method in practice.
• B) It is less costly to implement.
• C) It avoids the expensive analysis for categorizing costs as either fixed or variable.
• D) It allocates fixed cost as per the budgeted usage that helps in short and long-run planning.

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Definitions:

Total Revenue

Total revenue refers to the total amount of money generated by a business or organization from its activities, often from sales of goods or services, before any expenses are subtracted.

Demand Elasticity

A metric for assessing the reaction of a good's demanded quantity to its price adjustments.

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.