Questions:
1. Why is the dual-rate charging method better than the single-rate method? In what circumstances would it not matter whether dual or single rates were used?
2. Explain the difference between the direct method and the sequential method.
3. The reciprocal method of allocation is more accurate than either the direct or sequential methods. Do you agree or disagree? Explain.
4. What is a joint cost? How does it relate to by-products?
5. How do joint costs differ from other common costs?