Answer (D) is correct . The single-rate method combines fixed and variable costs. However, dual rates are preferable because they allow variable costs to be allocated on a different basis from fixed costs.
Answer (A) is incorrect because The step method can be used on a single- or dual-rate basis.
Answer (B) is incorrect because The reciprocal method can be used on a single- or dual-rate basis.
Answer (C) is incorrect because The direct method can be used on a single- or dual-rate basis.
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