The correct answer is: D. second incremental user
In incremental cost allocation method, cost object users are ranked in order of their importance to the organization. The first incremental user is the user who is most important to the organization, and the second incremental user is the user who is second most important to the organization.
The first incremental user is the user who would be most affected if the cost object were to be eliminated. The second incremental user is the user who would be second most affected if the cost object were to be eliminated.
The incremental cost allocation method is a method of allocating costs to cost objects based on the benefits that each cost object receives from the costs. The incremental cost allocation method is a fair and equitable method of allocating costs, and it is a method that is often used in organizations.
Here is a brief explanation of each option:
- A. First incremental user: The first incremental user is the user who is most important to the organization. The first incremental user would be most affected if the cost object were to be eliminated.
- B. Primary user: The primary user is the user who uses the cost object the most. The primary user is the user who receives the most benefits from the cost object.
- C. Secondary user: The secondary user is the user who uses the cost object less than the primary user. The secondary user receives less benefits from the cost object than the primary user.
- D. Second incremental user: The second incremental user is the user who is second most important to the organization. The second incremental user would be second most affected if the cost object were to be eliminated.