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Gala2k [10]
3 years ago
12

True or False. The standminus−alone cost allocation method ranks the individual users of a cost object in order of users most re

sponsible for a common cost and then uses these rankings to allocate the costs among the users.
Business
1 answer:
Reptile [31]3 years ago
6 0

Answer:

False

Explanation:

It is 'Incremental cost allocation method' that ranks the individual users of a cost object in order of users most responsible for a common cost (the most responsible will be primary user) and then uses these rankings to allocate the costs among the users (incremental users).

Stand-alone cost allocation method allocates cost proportionately among all users based on a basis which relates to each users proportion of the total. For example the basis could be proportion of sales of responsibility centers to total sales of organization.

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