Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 15 - Allocation of Support-Department Costs, Common Costs, and Revenues - Assignment Material - Questions - Page 622: 15-2

Answer

The dual-rate method helps division managers understand the behavior of fixed and variable costs, which is valuable for decision-making. It allows them to distinguish between costs that don't change with production levels (fixed) and those that vary with output (variable). This understanding aids in making more informed decisions.

Work Step by Step

The dual-rate method helps division managers understand the behavior of fixed and variable costs, which is valuable for decision-making. It allows them to distinguish between costs that don't change with production levels (fixed) and those that vary with output (variable). This understanding aids in making more informed decisions.
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