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?
A . Fixed percentage
B . Equally
C . Basis
D . Fixed weight

View Answer

Answer: C

Explanation:

References:

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

ledger/ledger-allocation-rules