question archive 1) Describe how the dual-rate method is useful to division managers in decision making 2) How do budgeted cost rates motivate the support-department manager to improve efficiency?
1) Describe how the dual-rate method is useful to division managers in decision making 2) How do budgeted cost rates motivate the support-department manager to improve efficiency?
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1) Describe how the dual-rate method is useful to division managers in decision making
2) How do budgeted cost rates motivate the support-department manager to improve efficiency?
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Answer:
1.
The dual-rate method provides information to division managers about cost behavior. Knowing how fixed costs and variable costs behave differently is useful in decision making
2.
Budgeted cost rates motivate the manager of the support department to improve efficiency because the support department bears the risk of any unfavorable cost variances.
