Stuart Inc. is planning to lease computer equipment for its production and testing departments. Currently, the production and testing departments lease it separately and pay $231,000 and $399,000, respectively, as lease charges. If both the departments lease the equipment jointly, the contract will cost only $570,000. If the cost-allocation method ranks the individual users of a cost object in the order of users most responsible for the common cost and then uses this ranking to allocate cost among those users, Stuart, Inc. must be using the cost-allocation method.

INCREMENTAL cost allocation method

Explanation:

Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.

Incremental Cost-allocation method

Explanation:

Incremental cost-allocation method has to do with establishing priorities among users and allocating common costs to the primary party up to the amount of that user's stand-alone costs which is shown in the case explained here.

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported