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 . Distribute the source document amount equally
B . Fixed weight
C . Equally
D . Basis

View Answer

Answer: D

Explanation:

Reference:

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