In General, Indirect Costs Are Allocated, While Direct Costs Are

question 128

True/False

In general, indirect costs are allocated, while direct costs are assigned.

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Definitions:

Time-Driven

Refers to a method or process that is triggered or determined by the passage of time.

Activity-Based Costing

A methodology for calculating costs that distributes overhead and indirect expenses to products and services relative to the activities they utilize.

Customer Cost Analysis

The process of analyzing the costs related to acquiring and serving a customer, often to determine profitability.

Processing Batches

Groups of items or materials processed together through a production or manufacturing procedure at the same time.