The Single-Rate Method Transforms the Direct Costs Per Hour into Indirect

question 147

True/False

The single-rate method transforms the direct costs per hour into indirect costs to users of that facility.

---

Definitions:

Costing Method

a technique or methodology used to determine the cost associated with a production process or project.

LCM Approach

The Lower of Cost or Market method, an accounting principle requiring inventory to be recorded at either its historical cost or market value, whichever is lower, to reflect potential losses.

Market Value

An estimation of the price at which an asset or company could be bought or sold in a current market.