Under Dual Cost Allocation, Variable Costs Are Allocated Based on the User

question 75

Multiple Choice

Under dual cost allocation, variable costs are allocated based on the user departments of the support department's output:

• A) long-run usage
• B) short-run usage
• C) long-run usage and short-run usage
• D) neither the long- or short-run usage

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Definitions:

Predistribution Plan

A strategy aimed at addressing income inequality through policy measures affecting the market distribution of income before taxes and transfers, rather than by adjusting after-tax incomes.

Financial Report

A formal record of the financial activities and position of a business, individual, or other entity over a period.

Liquidation

The process of closing a business and distributing its assets to claimants, typically after a company is unable to meet its financial obligations.

Profit and Loss Ratio

Measures the efficiency of a company in generating profits from its operations, calculated by dividing net profit by net sales.