Question content area top

Part $1$

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

Question content area bottom

Part $1$

The$$ single$-$rate $($cost$-$allocation$)$ method makes

$$

$$

a

no

distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost objects using

$$

$$

a different

the same

rate per unit of the single allocation base.

Part $2$

The$$ dual$-$rate $($cost$-$allocation$)$ method classifies costs in each cost pool into

$$

$$

one pool$$a fixed$-$cost pool

one pool$$a variable$-$cost pool

two pools$$a variable$-$cost pool and a fixed$-$cost pool

$,$

with each pool using

$$

$$

a different

the same

$$cost$-$allocation base.