Question

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) direct-cost pool and an indirect-cost pool D) direct-cost pool and a reciprocal-cost pool

To guide cost allocation decisions, the ability to bear criterion ________.

		A) is the primary criterion used in activity-based costing
		B) allocates cost among the beneficiaries in proportion to the benefits each receives.
		C) results in subsidizing products that are not profitable
		D) is used more frequently than any other criteria

Answer 1

1. Option B. The costs are classified into variable cost pool and fixed cost pool under dual rate cost allocation method.

2. Option A is the answer

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