A Company Sets Up Cost Pools for Indirect Cost Allocation

question 32

Multiple Choice

A company sets up cost pools for indirect cost allocation. Management sees clear cause-and-effect relationships between the incurrence of costs and the chosen the cost-allocation base. What other common relationships or basis with a cost allocation base might management utilize to allocate costs?

• A) R&D expenses
• B) benefits -received
• C) Capital investment in a related process
• D) gross profit proportions

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James Spradley

An influential American anthropologist known for his work on ethnography and qualitative research methods.

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