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 . Target Split
B . Fixed
C . Even Split
D . Proportional

View Answer

Answer: A

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