Under the dual-rate cost-allocation method, when fixed costs are allocated based on actual usage then ________
A) user-division managers are motivated to make accurate long-run usage forecasts
B) user-division managers can better plan for the short-run and for the long-run
C) the costs of unused capacity are highlighted
D) variations in one division's usage affect another division's allocation
Answer: D
Business
You might also like to view...
A firm sells its accounts receivable to a factor at a 5% discount. If the average collection period is 1 month, determine the effective annual rate of interest on the factoring.
A) 80.06% B) 90.06% C) 75.06% D) 85.06%
Business
Which of the following deductions is paid by both the employer and employee?
A) federal income taxes B) federal unemployment taxes C) FICA taxes D) SUTA taxes
Business