There Is No Best Cost Allocation Methodology for a Human

question 3

Multiple Choice

There is no best cost allocation methodology for a human service agency or program to use in allocating indirect costs. Which of the following statements is INCORRECT?

• A) The total direct costs methodology is the simplest approach to implement.
• B) The direct labor costs methodology is said to be superior approach then the majority of an agency's programs are labor intensive.
• C) The direct costing method is said to be the most accurate for of cost allocation.
• D) The indirect costing method is used when labor is intensive but labor hours are not.

Recognize the conditions under which natural monopolies occur.

Analyze the elasticity of demand in the context of monopolistic markets.

Identify price-making strategies in imperfectly competitive markets.

Understand the relationship between demand curves and revenue in the context of market structures.

---

Definitions:

Outstanding Balance

It signifies the total amount still owed on a loan or credit line, factoring in both principal and interest, at a certain point in time.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets over a specific period.

Per Annum

Annually or by the year; often used to specify interest rates, salaries, and other financial measurements that occur on a yearly basis.

Accumulate

In investment terms, to gradually gather or acquire an increased quantity of a particular asset or security over time.