Which allocation method should you use?

A company plans to create a new allocation rule for electric utilities expenses.

The allocation rule must meet the following requirements:

– Distribute overhead utility expense to each department.

– Define how and in what proportion the source amounts must be distributed on various destination lines.

You need to configure the allocation rule.

Which allocation method should you use?

Fixed percentage

Fixed weight

Equally

Basis

View Answer

Answer: D

Explanation:

References:

https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/general-ledger/ledger­allocation-rules