Dual Rates Combine the Fixed and Variable Costs

question 150

True/False

Dual rates combine the fixed and variable costs.

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Definitions:

Split-Off Point

The point in processing at which all joint costs have been incurred.

Relative Net Realizable Values

A method used to allocate joint costs based on the estimated final sales value of products minus any additional processing costs.

Charge

A fee or price asked for goods and services, or an accounting entry reflecting a debt or liability.