1C3P WHEN ALLOCATING COSTS FROM ONE DEPARTMENT TO ANOTHER, A DUAL-RAT...

216. CSO: 1C3d LOS: 1C3p

When allocating costs from one department to another, a dual-rate cost-allocation method

may be used. The dual-rate cost-allocation method is most useful when

a. two or more cost pools are to be allocated.

b. two or more departments’ costs are to be allocated.

c. two or more products are produced.

d. costs are separated into variable-cost and fixed-cost subpools.

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