Which of the following is NOT a method used for allocating costs of support departments?

Multiple choice question for Department Costs, Common Costs and Revenues. Select an option, then review the explanation below.

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Sales mix allocation techniqueDual-rate cost allocation approachSingle-rate cost allocation approachBoth options B and C

Explanation

The sales mix allocation method is not used for allocating support department costs. Both the dual-rate and single-rate cost allocation methods are standard approaches for this purpose, making option D the correct choice.

Practice related questions from the same subject.

1.Which of the following approaches are used to assign costs among reciprocal support departments?
2.In the incremental cost allocation approach, what is the term for the cost object user that holds the second position in the ranking sequence?
3.What is the name of the technique that distributes the expenses of support departments to both operating and other support departments?
4.Which cost allocation technique assigns support department expenses to operating departments by accounting for all mutual services exchanged among support departments?
5.In the incremental approach, the party assigned the highest priority in distributing shared costs is known as the ____________?

Which of the following is NOT a method used for allocating costs of support departments?

Explanation

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