Business & Finance Assignment | Custom Assignment Help
Q – Excellent explanation; is one preferred over the other and why/why not?A – I don’t believe one is preferred more than the other because they both have their flaws the single rate method allocates fixed cost and make them appear as a variable cost. This is bad because a company may take actions that could harm this as a whole. A good thing is that it allocates cost based of actual usage. A dual rate is based on budgeted usage. This is way i don’t see one as preferred more then another. Instructor’s Q – I like your logic; is there an advantage of one over the other in specific circumstances?Criteria – If answer is outside of our textbook, please provide your source or reference, if within, provide the page or pages.Reference – Horngren, C. T., Datar, S.M., Foster, G., Rajan, M., & Ittner, C. (2009). Cost Accounting: A Managerial Emphasis (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
