Reply to: "A single-rate method is used to cost objects in a single cost pool. It combines the fixed and variable costs to cost objects using the same rate per unit of a single allocation base. The dual-rate method separates the fixed costs and variable costs in different cost pools. The advantage of the single-rate method is the cost, it doesn't require expensive analysis to classify individual cost items into fixed and variable categories. It also gives the users more operational control based on the final allocations of the actual usage of support services rather than the expected demand. The disadvantages are that it may lead managers to make poor decisions for the company but not necessarily for themselves. The advantage of the dual-rate method is that it leads managers to make beneficial decisions for the entire company. It also allows managers to plan efficiently in the short and long term because they know the cost allocated to them in advance. On the contrary, a disadvantage is that separating variable and fixed costs can be a difficult task. It can also cause managers to underestimate their budget usage. Lastly, the price is based on the budgeted usage versus the actual usage