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What would be some pros and cons of using acutal versus capacity cost driver rates and...

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Accounting

What would be some pros and cons of using acutal versus capacitycost driver rates and vice versus. this is the question i amultimately answering, "Which cost driver rates should be used:actual or capacity based? Why?"

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4.2 Ratings (906 Votes)
Actual cost drivers pros Helps in allocation of cost as per actual cost drivers There will be no unabsorbed overheads after the allocation of activity based cost Actual cost drivers cons Does not help in understanding capacity    See Answer
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