Distinguish between the stand-alone and the incremental revenue-allocation methods.

Questions15-1Distinguish between the single-rate and the dual-rate methods.

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15-3How do budgeted cost rates motivate the support-department manager toimprove efficiency?

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15-5Why might a manager prefer that budgeted rather than actual cost-allocationrates be used for costs being allocated to his or her department fromanother department?

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15-14Distinguish between the stand-alone and the incremental revenue-allocationmethods.

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Cost Accounting A Managerial Emphasis

Chapter 15

Allocation of Support-Department Costs, Common Costs, and Revenues

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Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

Cost Accounting A Managerial Emphasis

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What is the stand

Stand-Alone (separate) Revenue Allocation Method uses product-specific information on the products in the bundle as weights for allocating the bundled revenues to the individual products.

What is incremental allocation?

Definition of incremental revenue allocation allocation method establishing priorities among the items in a bundle. The primary product is assigned 100% of its stand-alone revenue, with the remaining revenue from the bundle assigned sequentially to the other items.

What are the three allocation methods?

There are three main disk space or file allocation methods..
Contiguous Allocation..
Linked Allocation..
Indexed Allocation..

What is the difference between single and dual rate allocation?

The main difference between the single rate and dual rate method is that the single rate method allocates the rate per unit of cost allocation for both variable and fixed cost.

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