Stand-alone cost allocation method: The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs. Incremental cost allocation method: The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user. To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

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Answer 1

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

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Answer 2

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Expert Solution & Answer

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Answer 3

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Expert Solution & Answer

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Answer 4

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Expert Solution & Answer

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Answer 5

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Answer 6

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

Answer 7

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

Answer 8

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

Answer 9

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

Answer 10

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

Answer 11

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

Answer 12

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

Answer 13

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

Answer 14

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Answer 15

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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 - What are the challenges of using the incremental...

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

The most appropriate method to allocate revenues among the product D and the reason for it.

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Chapter 15 Solutions