6) Benefits of the dual-rate method include:A) variable costs that are transformed into fixed costs for user decision makingB) the low cost of implementationC) avoidance of expensive analysis for categorizing costs as either fixed or variableD) information that leads to outsourcing decisions that benefit the organization as a whole
Question
- Benefits of the dual-rate method include:A) variable costs that are transformed into fixed costs for user decision makingB) the low cost of implementationC) avoidance of expensive analysis for categorizing costs as either fixed or variableD) information that leads to outsourcing decisions that benefit the organization as a whole
Solution 1
The dual-rate method has several benefits:
A) Transformation of variable costs into fixed costs for user decision making: This allows for easier budgeting and financial planning as costs become more predictable and stable.
B) Low cost of implementation: The dual-rate method is relatively simple to implement, which can save the organization money in terms of time and resources.
C) Avoidance of expensive analysis for categorizing costs as either fixed or variable: With the dual-rate method, there is no need to spend time and money on analyzing and categorizing costs, which can be a complex and costly process.
D) Information that leads to outsourcing decisions that benefit the organization as a whole: The dual-rate method can provide valuable information that can help the organization make strategic decisions about outsourcing, which can lead to cost savings and other benefits.
Solution 2
The dual-rate method has several benefits:
A) Transformation of variable costs into fixed costs for user decision making: This allows for easier budgeting and financial planning as costs become more predictable and stable.
B) Low cost of implementation: The dual-rate method is relatively simple to implement, which can save the organization money in terms of time and resources.
C) Avoidance of expensive analysis for categorizing costs as either fixed or variable: With the dual-rate method, there is no need to spend time and resources on determining whether costs are fixed or variable, which can be a complex and costly process.
D) Information that leads to outsourcing decisions that benefit the organization as a whole: The dual-rate method can provide valuable information that can help an organization make strategic decisions about outsourcing, which can lead to cost savings and other benefits.
Similar Questions
2) The dual-rate cost-allocation method classifies costs in each cost pool into a:A) budgeted-cost pool and an actual-cost poolB) variable-cost pool and a fixed-cost poolC) used-capacity-cost pool and a practical-capacity-cost poolD) direct-cost pool and a reciprocal-cost pool
Ques. 2 What do you understand by the Cost concept and dual Aspect concept ?
1) The method that allocates costs in each cost pool using the same rate per unit is known as the:A) incremental cost-allocation methodB) reciprocal cost-allocation methodC) single-rate cost allocation methodD) dual-rate cost-allocation method
Explain the Flexible exchange rate bringing out its advantages and disadvantages
Fill in the Blank QuestionFill in the blank question.Cost information from (neither, both) costing method(s) is helpful to management in setting prices.
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