1- Distinguish between the single-rate and the dual-rate methods.

2- Describe how the dual-rate method is useful to division managers in decision making.

3- How do budgeted cost rates motivate the support-department manager to improve efficiency?

4- Why might a manager prefer that budgeted rather than actual cost-allocation rates be used for costs being allocated to his or her department from another department?

5- Distinguish among the three methods of allocating the costs of support departments to operating departments.

6- Distinguish between two methods of allocating common costs.

7- Distinguish between the stand-alone and the incremental revenue-allocation methods.