Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method. To explain: The difference between the single-rate and the dual-rate methods.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 15, Problem 15.1Q

To determine

Cost Allocation Method:

The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method.

To explain: The difference between the single-rate and the dual-rate methods.

Expert Solution & Answer

Answer to Problem 15.1Q

The difference between the single-rate cost allocation and the dual-rate cost allocation methods is as follows:

The allotment of costs by the single-rate method involves no variation between the fixed and variable costs while the allotment of costs by dual-rate method includes making two different pools one for the variable cost and the other for the fixed cost.
The costs in the single-rate method of allotment are alloted using the same rate per unit of the single base while in the dual-rate method of allotment, the cost in each pool is alloted using the different base of allocation.

Explanation of Solution

The cost allocation refers to the method of identifying the costs which are needed to be assigned to a unit.
The costs are assigned as per the needs of the departments or the products or the inventories.
The cost allocation methods are of two types-single-rate allocation method and dual-rate allocation method.

Conclusion

Thus, the difference between the single-rate and the dual-rate allocation methods are as mentioned above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Question 4Waterfront Inc. wishes to borrow on a short-term basis withoutreducing its current ratio below 1.25. At present its current assetsand current liabilities are $1,600 and $1,000 respectively. How muchcan Waterfront Inc. borrow?

Question 6During 2019, Bitsincoins Corporation had EBIT of $100,000, a changein net fixed assets of $400,000, an increase in net current assets of$100,000, an increase in spontaneous current liabilities of $400,000,a depreciation expense of $50,000, and a tax rate of 30%. Based onthis information, what is Bitsincoin’s free cash flow?

Cariveh Co sells automotive supplies from 25 different locations in one country. Each branch has up to 30 staff working there, although most of the accounting systems are designed and implemented from the company's head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequently advising and implementing controls within those systems.Cariveh has an internal audit department of six staff, all of whom have been employed at Cariveh for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor.The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department.You are an audit manager in the internal audit department…

Answer 2

Question

Chapter 15, Problem 15.1Q

To determine

Cost Allocation Method:

The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method.

To explain: The difference between the single-rate and the dual-rate methods.

Expert Solution & Answer

Answer to Problem 15.1Q

The difference between the single-rate cost allocation and the dual-rate cost allocation methods is as follows:

The allotment of costs by the single-rate method involves no variation between the fixed and variable costs while the allotment of costs by dual-rate method includes making two different pools one for the variable cost and the other for the fixed cost.
The costs in the single-rate method of allotment are alloted using the same rate per unit of the single base while in the dual-rate method of allotment, the cost in each pool is alloted using the different base of allocation.

Explanation of Solution

The cost allocation refers to the method of identifying the costs which are needed to be assigned to a unit.
The costs are assigned as per the needs of the departments or the products or the inventories.
The cost allocation methods are of two types-single-rate allocation method and dual-rate allocation method.

Conclusion

Thus, the difference between the single-rate and the dual-rate allocation methods are as mentioned above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 15, Problem 15.1Q

To determine

Cost Allocation Method:

The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method.

To explain: The difference between the single-rate and the dual-rate methods.

Expert Solution & Answer

Answer to Problem 15.1Q

The difference between the single-rate cost allocation and the dual-rate cost allocation methods is as follows:

The allotment of costs by the single-rate method involves no variation between the fixed and variable costs while the allotment of costs by dual-rate method includes making two different pools one for the variable cost and the other for the fixed cost.
The costs in the single-rate method of allotment are alloted using the same rate per unit of the single base while in the dual-rate method of allotment, the cost in each pool is alloted using the different base of allocation.

Explanation of Solution

The cost allocation refers to the method of identifying the costs which are needed to be assigned to a unit.
The costs are assigned as per the needs of the departments or the products or the inventories.
The cost allocation methods are of two types-single-rate allocation method and dual-rate allocation method.

Conclusion

Thus, the difference between the single-rate and the dual-rate allocation methods are as mentioned above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 15, Problem 15.1Q

To determine

Cost Allocation Method:

The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method.

To explain: The difference between the single-rate and the dual-rate methods.

Expert Solution & Answer

Answer to Problem 15.1Q

The difference between the single-rate cost allocation and the dual-rate cost allocation methods is as follows:

The allotment of costs by the single-rate method involves no variation between the fixed and variable costs while the allotment of costs by dual-rate method includes making two different pools one for the variable cost and the other for the fixed cost.
The costs in the single-rate method of allotment are alloted using the same rate per unit of the single base while in the dual-rate method of allotment, the cost in each pool is alloted using the different base of allocation.

Explanation of Solution

The cost allocation refers to the method of identifying the costs which are needed to be assigned to a unit.
The costs are assigned as per the needs of the departments or the products or the inventories.
The cost allocation methods are of two types-single-rate allocation method and dual-rate allocation method.

Conclusion

Thus, the difference between the single-rate and the dual-rate allocation methods are as mentioned above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 15.1Q

To determine

Cost Allocation Method:

The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method.

To explain: The difference between the single-rate and the dual-rate methods.

Expert Solution & Answer

Answer to Problem 15.1Q

The difference between the single-rate cost allocation and the dual-rate cost allocation methods is as follows:

The allotment of costs by the single-rate method involves no variation between the fixed and variable costs while the allotment of costs by dual-rate method includes making two different pools one for the variable cost and the other for the fixed cost.
The costs in the single-rate method of allotment are alloted using the same rate per unit of the single base while in the dual-rate method of allotment, the cost in each pool is alloted using the different base of allocation.

Explanation of Solution

The cost allocation refers to the method of identifying the costs which are needed to be assigned to a unit.
The costs are assigned as per the needs of the departments or the products or the inventories.
The cost allocation methods are of two types-single-rate allocation method and dual-rate allocation method.

Conclusion

Thus, the difference between the single-rate and the dual-rate allocation methods are as mentioned above.

Answer 6

Chapter 15, Problem 15.1Q

To determine

Cost Allocation Method:

The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method.

To explain: The difference between the single-rate and the dual-rate methods.

Expert Solution & Answer

Answer to Problem 15.1Q

The difference between the single-rate cost allocation and the dual-rate cost allocation methods is as follows:

The allotment of costs by the single-rate method involves no variation between the fixed and variable costs while the allotment of costs by dual-rate method includes making two different pools one for the variable cost and the other for the fixed cost.
The costs in the single-rate method of allotment are alloted using the same rate per unit of the single base while in the dual-rate method of allotment, the cost in each pool is alloted using the different base of allocation.

Explanation of Solution

The cost allocation refers to the method of identifying the costs which are needed to be assigned to a unit.
The costs are assigned as per the needs of the departments or the products or the inventories.
The cost allocation methods are of two types-single-rate allocation method and dual-rate allocation method.

Conclusion

Thus, the difference between the single-rate and the dual-rate allocation methods are as mentioned above.

Answer 7

Chapter 15, Problem 15.1Q

To determine

Cost Allocation Method:

The cost allocation method is the method by which the costs to be assigned are identified and aggregated. The cost allocation method is of two types, single rate allocation method, and dual rate allocation method.

To explain: The difference between the single-rate and the dual-rate methods.

Answer 8

Expert Solution & Answer

Answer to Problem 15.1Q

The difference between the single-rate cost allocation and the dual-rate cost allocation methods is as follows:

The allotment of costs by the single-rate method involves no variation between the fixed and variable costs while the allotment of costs by dual-rate method includes making two different pools one for the variable cost and the other for the fixed cost.
The costs in the single-rate method of allotment are alloted using the same rate per unit of the single base while in the dual-rate method of allotment, the cost in each pool is alloted using the different base of allocation.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The cost allocation refers to the method of identifying the costs which are needed to be assigned to a unit.
The costs are assigned as per the needs of the departments or the products or the inventories.
The cost allocation methods are of two types-single-rate allocation method and dual-rate allocation method.

Answer 12

Conclusion

Thus, the difference between the single-rate and the dual-rate allocation methods are as mentioned above.

Answer 13

Ch. 15 - Prob. 15.1Q Ch. 15 - Describe how the dual-rate method is useful to...Ch. 15 - How do budgeted cost rates motivate the...Ch. 15 - Give examples of allocation bases used to allocate...Ch. 15 - Why might a manager prefer that budgeted rather...Ch. 15 - To ensure unbiased cost allocations, fixed costs...Ch. 15 - Prob. 15.7Q Ch. 15 - What is conceptually the most defensible method...Ch. 15 - Distinguish between two methods of allocating...Ch. 15 - Prob. 15.10Q

Answer to Problem 15.1Q

Explanation of Solution

Want to see more full solutions like this?

Chapter 15 Solutions