Under the Dual-Rate Cost-Allocation Method, When Fixed Costs Are Allocated

Multiple Choice

Under the dual-rate cost-allocation method, when fixed costs are allocated based on actual usage then ________.

A) user-division managers are motivated to make accurate long-run usage forecasts
B) user-division managers can better plan for the short-run and for the long-run
C) the costs of unused capacity are highlighted
D) variations in one division's usage affect another division's allocation