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.

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Definitions:

Population Standard Deviation

A measure of the dispersion of a set of data from its mean, calculated for the entire population.

Confidence Interval

A set of numerical outcomes, sourced from gathering samples, anticipated to hold the measure of a not yet known population parameter.

Population Total

The sum total of all observations or values in the entire population being studied.

Prediction Interval

An estimate of an interval in which future observations will fall, with a certain probability, given what has already been observed.