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Author Question: Which of the following is a disadvantage of a dual-rate method? (Read 58 times)

tfester

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on: Mar 6, 2021
Which of the following is a disadvantage of a dual-rate method?
◦ It allocates fixed costs on the basis of budgeted long-run usage, which may tempt some managers to underestimate their planned usage.
◦ It may lead operating department managers to make sub-optimal decisions that are in their own best interest.
◦ It allocates fixed and variable-cost pool using the same cost-allocation base, which will mislead managers in making decisions.
◦ It does not guide department managers to make decisions that benefit both the organization as a whole and each department.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by tfester on Mar 6, 2021

connor417

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tfester

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Reply 2 on: Mar 6, 2021
Wow, this really help

amit

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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