Allocating Support Department Costs Methods Homework Help Assures Improved Grades!
There are various firms whose focus is not towards manufacture and outcome of any end products. Few of the sections on this perspective are for services like health clinics, cafeterias, productive support units and even janitorial services. All of these follow allocation services. Still, there are certain factors like dual and single rate methodologies which remain unclear for most students. So, we have designed allocating support department costs using the single-rate and dual-rate methods homework help manual.
A brief insight
We are already aware of the numerous business organizations that are existent in our society. And this is the reason of various corporations using either dual rate methodology or single rate methodology to operate with allocating support department costs. There is no doubt regarding various support departments who use cost accounting methods in order to distribute costs. In our allocating support department costs using the single-rate and dual-rate methods assignment help manual more details on this subject with ample examples.
Explaining single rate method
Allocation ofa single rate or price can be achieved from cost pool. Its distribution takes place in different support departments where they utilize the amount at a similar rate. This price is on per unit and takes on a base of single allocation. In simple words, single rate method expresses a certain methodology which does not involve in separation of variable cost and fixed cost.
Dual rate method
It is another of the methods with which allocating support department costs is attainable. It distributes variable costs and fixed costs with various base rates (cost allocation). This methodology does make a differentiation between variable cost and fixed costs. Support department uses this method by using actual usage and budgeted usage in various ways.
Achievement of allocation
As highlighted above, there are 2 approaches for allocating support department costs; management of it is via the utilization of:
- Operating divisions using actual hours and budgeted rate
- Operating divisions that may consider using actual hours and budgeted rate
There are more of such details related to allocating support department costs which you can learn more from our allocating support department costs using the single-rate and dual-rate methods homework help service.
Benefits of using dual method over single method
Amongst the many, there are 2 major benefits.
- Allocation of fixed cost takes place proportionately resulting in cost based in currences.
- It is with utilization of practical capacity when fixed costs are calculated. This computation is on base rates.
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