Cost Accounting: A Managerial Emphasis, 15th Edition
15th Edition
ISBN: 9780133803815
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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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.
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Chapter 15 Solutions
Cost Accounting: A Managerial Emphasis, 15th Edition
Ch. 15 - Prob. 15.1QCh. 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. 15.7QCh. 15 - What is conceptually the most defensible method...Ch. 15 - Distinguish between two methods of allocating...Ch. 15 - Prob. 15.10Q
Ch. 15 - What is one key way to reduce cost-allocation...Ch. 15 - Describe how companies are increasingly facing...Ch. 15 - Distinguish between the stand-alone and the...Ch. 15 - Identify and discuss arguments that individual...Ch. 15 - Prob. 15.15QCh. 15 - Prob. 15.16ECh. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Prob. 15.21ECh. 15 - Prob. 15.22ECh. 15 - Allocation of common costs. Evan and Brett are...Ch. 15 - Prob. 15.24ECh. 15 - Prob. 15.25ECh. 15 - Prob. 15.26ECh. 15 - Single-rate, dual-rate, and practical capacity...Ch. 15 - Prob. 15.28PCh. 15 - Prob. 15.29PCh. 15 - Prob. 15.30PCh. 15 - Prob. 15.31PCh. 15 - Prob. 15.32PCh. 15 - Prob. 15.33PCh. 15 - Prob. 15.34PCh. 15 - Prob. 15.35PCh. 15 - Prob. 15.36P
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