The primary distinction between fixed and dynamic allocation schedules lies in how the allocation weighting is determined. Dynamic allocation schedules derive their weighting from the balance of a statistical account, which can fluctuate from one period to the next, making the allocation "dynamic." For example, allocating rent based on departmental headcount, where headcount is tracked in a statistical account. Conversely, fixed allocation schedules use a predefined, static weighting, such as a fixed percentage or amount, that remains constant for each execution of the schedule unless it is manually edited.

A. Fixed allocation requires zeroing out the source account.

This is incorrect. The option to zero out the source account by specifying a credit account is available for both fixed and dynamic schedules; it is not a requirement for fixed schedules.

B. Dynamic allocation requires zeroing out the source account.

This is incorrect. Similar to fixed schedules, zeroing out the source account is an optional configuration for dynamic schedules, not a mandatory feature that differentiates it.

1. NetSuite Help Center

SuiteAnswers. (2023). Creating Allocation Schedules. Answer ID: 9928.

This document states: "In a dynamic allocation

the weight is based on the statistical account's balance for the period... In a fixed allocation

the weight is based on a predefined amount or percentage that does not change from period to period." This directly supports options C and D.

2. NetSuite Help Center

SuiteAnswers. (2023). Allocation Schedule Examples. Answer ID: 39281.

The examples provided clearly illustrate that dynamic allocations use a statistical source (e.g.

headcount) for weighting

while fixed allocations use hard-coded percentages. This reinforces the core difference described in options C and D.

3. NetSuite Help Center

SuiteAnswers. (2023). Statistical Accounts. Answer ID: 9930.

This article explains the purpose of statistical accounts

noting their use "as the weighting basis in dynamic allocation schedules." This confirms that statistical accounts are integral to the dynamic allocation method.