Which of the Following Describes How Managers Compute the Actual

question 27

Multiple Choice

Which of the following describes how managers compute the actual indirect-cost rate?

• A)Add actual total indirect costs in the pool to the actual total quantity of the cost-allocation base.
• B)Divide actual total indirect costs in the pool by the actual total quantity of the cost-allocation base.
• C)Multiply actual indirect costs in the pool by the actual total quantity of the cost-allocation base
• D)Subtract actual direct costs in the pool from the actual total quality of the cost-allocation base
• E)Subtract actual indirect costs in the pool from the actual quantity of the cost-allocation base

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Definitions:

IT Positively

IT Positively refers to the positive impact that information technology can have on businesses and society, including increased efficiency, connectivity, and access to information.

Negatively

In a manner that expresses or implies the presence of harmful, undesirable, or adverse effects.

Quality

The degree to which a set of inherent characteristics fulfills requirements.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders in the company.