General and Administrative Costs Are Usually Allocated as a Percent

question 71

True/False

General and administrative costs are usually allocated as a percent of the total of a direct cost which includes labor, materials, or equipment.

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Definitions:

Quorum of Shareholders

The minimum number of shareholders required to be present at a meeting in order to legally conduct business.

Operating Policy

Guidelines or principles that direct the operations and decision-making processes within an organization or business.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Articles of Incorporation

Legal documents filed with a state government to legally establish a corporation.