An Advantage of Using a Practical Capacity-Based Allocation Rate Is

Multiple Choice

An advantage of using a practical capacity-based allocation rate is:

A) It does not change across products.
B) It spreads all capacity costs over budgeted, rather than actual, volume.
C) When there is idle capacity, capacity costs are spread over a smaller production volume.
D) It does not change across periods.
E) All of the above are advantages of using a practical capacity-based allocation rate.