Vidyalelo
Commerce · Q616

Costing

Graduate and Post Graduate · Commerce · question 616

Q616

Support department cost allocation method which makes no difference between variable and fixed costs is classified as

A.
sales mix allocation method
B.
dual-rate cost-allocation method
C.
single rate cost allocation method
Answer
D.
quantity variance allocation method

Answer: Option C

Solution

Answer: Option C
Solution:
Support department cost allocation method which makes no difference between variable and fixed costs is classified as single rate cost allocation method. The single-rate cost-allocation method makes no distinction between fixed costs and variable costs in the cost pool.