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Many Companies Use the Dual-Cost Method of Cost Allocation

Question 46

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Many companies use the dual-cost method of cost allocation.
Required:
A. How does the dual-cost method work?
B. Is there any advantage of the dual-cost method over a method that uses a combined, lump-sum single rate? Briefly explain.

Correct Answer:

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A. The dual-cost method involves creatin...

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