Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as
A. sales mix allocation method
B. dual-rate cost-allocation method
C. single rate cost allocation method
D. quantity variance allocation method
Answer: Option B
Solution (By Examveda Team)
Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as dual-rate cost-allocation method. Allocations are performed in order to create financial statements that are in compliance with the applicable accounting framework.
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