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
D. quantity variance allocation method
Answer: Option C
Solution(By Examveda Team)
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.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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