Which of the Following Are Reasons for Using Longer Periods

question 198

Multiple Choice

Which of the following are reasons for using longer periods, such as a year, to calculate indirect cost rates?

• A) shorter the period, the greater is the influence of seasonal patterns on the amount of costs
• B) longer the period, the greater is the influence of seasonal patterns on the amount of costs
• C) shorter the period, the smaller is the influence of seasonal patterns on the amount of opportunity costs
• D) longer the period, the smaller is the influence of seasonal patterns on the amount of opportunity costs

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Definitions:

Staffing Needs

The requirements an organization has for the quantity and quality of workforce to meet its objectives and deliver on its strategies.

Average Observed Time

The mean time recorded for a given task or process, based on measurements taken over a series of observations or operations.

Allowance Factors

Elements taken into account to adjust time standards or costs, accounting for various delays or inefficiencies in operations.

Normal Time

The average time in which a task or operation should be completed under normal working conditions.