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Q. |
The Cooper/Kaplan "Rule of One" refers to the following: |
A. | Only one overhead rate should be used to allocate fixed costs. |
B. | If only one item is represented by an activity cost pool, then the cost can be classified as fixed. |
C. | If there is more than one activity cost pool, then one of the cost pools must be variable. |
D. | Traditional cost allocation systems will distort the allocations for at least one cost pool. |
Answer» B. If only one item is represented by an activity cost pool, then the cost can be classified as fixed. |
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