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Dollar-cost averaging is simply a method of purchasing shares of a mutual fund on a monthly basis. The same dollar amount is used each month to purchase fund shares month in and month out for typically a long period of time, such as from one to ten years. regular purchase of shares of stock or other securities will typically require the investor to decide the number of shares to be purchased and then place an actual trade, while dollar-cost averaging is the investing equivalent of âauto pilotâ. See also the 7 Questions to Ask When Buying a Mutual Funds.
That is, total overhead cost is highly correlated with the total amount of production material used. If total overhead cost is $10,000 and the dollar amount of production material used for all products is $50,000, calculate the overhead cost per material dollar as $10,000/$50,000 = $0.20 per material dollar.Step 2. Determine the amount of cost driver used in each unit of a product.Under the traditional method of overhead cost allocation, the business allocates the overhead cost indistinguishably based on the dollar amount of the production material consumed.tep 2. Determine the amount of cost driver used in each unit of a product. Under the traditional method of overhead cost allocation, the business allocates the overhead cost indistinguishably based on the dollar amount of the production material consumed.