Simple Costing Systems That Allocate Indirect Costs Are Most Likely

question 59

Multiple Choice

Simple costing systems that allocate indirect costs are most likely to use which of the following steps first?

• A)Identify the products that are the chosen cost objects.
• B)Identify the direct costs of the products.
• C)Select the cost-allocation bases to use for allocating indirect (or overhead)costs to the products to identify the direct costs of the products.
• D)Identify the indirect costs associated with each cost-allocation base.
• E)Compute the rate per unit of each cost allocation base.

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Definitions:

Formally Assigned Responsibilities

Duties or tasks that are officially allocated to an individual or a group within an organizational setting.

Training Program

A structured educational process that aims to enhance the knowledge, skills, and competencies of individuals to perform specific tasks or jobs.

Divorce

A legal dissolution of a marriage by a court or other competent body.

Work Pressure

The stress or strain experienced by an individual due to demands and expectations in their job.