Indirect Costs Are Those Items of Expense Proposed to Be

question 25

Multiple Choice

Indirect costs are those items of expense proposed to be incurred for two or more programs. Which of the following is NOT an example of indirect costs?

• A) A copy machine used in the case management program
• B) Utilities
• C) Telephone service
• D) Building rent

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Definitions:

Depreciation

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, reflecting the loss of value as the asset is used.

Capitalized

The process of recording a cost or expense as an asset on the balance sheet, rather than immediately expensing it, typically to spread the cost over its useful life.

Double-Declining-Balance Method

An accelerated depreciation method that doubles the normal depreciation rate, reducing the carrying value of an asset more quickly.