Distinguish between two methods of allocating common costs.

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Part 1

A.

1. The stand-alone cost allocation method uses information pertaining to each user of a cost object as a separate entity to determine the cost allocation weights. 2. The incremental cost allocation method ranks the individual users of a cost object in the order of users most responsible for the common costs and then uses this ranking to allocate costs among those users.

B.

1. The stand-alone cost allocation method uses information pertaining to each user of a cost object as a separate entity to determine the cost allocation weights. 2. The fixed cost allocation method where only the fixed costs are included in the cost allocation.

C.

1. The Shapley Value method calculates an average cost based on the costs allocated to each user as first the primary user, the second-ranked user, the third-ranked user, and so on. 2. The variable cost-allocation method where only the variable costs are included in the cost allocation.

D.

1. The Shapley Value method calculates an average cost based on the costs allocated to each user as first the primary user, the second-ranked user, the third-ranked user, and so on. 2. The fixed cost allocation method where only the fixed costs are included in the cost allocation.