A Single Indirect-Cost Rate Distorts Product Costs Because ________

question 140

Multiple Choice

A single indirect-cost rate distorts product costs because ________.

• A) there is an assumption that all support activities affect all products in a uniform way
• B) it recognizes specific activities that are required to produce a product
• C) competitive pricing is ignored
• D) it assumes all costs are product costs

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Definitions:

Performance

The act of carrying out or accomplishing an action, task, or function.

Causal Factors

Elements or conditions that bring about an effect or contribute to producing a result.

Experimental Method

A research methodology that systematically manipulates one or more variables to determine their effects on other variables, typically used to establish cause-and-effect relationships.

Variables

Elements or factors that can change and affect the outcome of an experiment or study.