Which of the following methods would we use if we wanted to ensure ‘a user defined coefficient’? (Select One)

Which of the following methods would we use if we wanted to ensure ‘a user defined coefficient’? (Select One)
A . Fixed
B . Proportional
C . Even Split
D . Indirect

View Answer

Answer:  B

Explanation:

There are typically three ways to split up shared costs:

Proportional: Based on relative percentage of direct costs

Even split: Split total amount evenly across targets

Fixed: User-defined coefficient (the sum of coefficients needs to be 100%)

This page here is perhaps one of the most important pages to review and understand before the exam. Identifying Shared Costs