The Predetermined Indirect Cost Allocation Rate Is Computed as

question 62

Multiple Choice

The predetermined indirect cost allocation rate is computed as

• A)total estimated indirect costs / total estimated amount of the allocation base.
• B)total amount of the allocation base / total estimated indirect costs.
• C)total estimated indirect costs + total estimated amount of the allocation base.
• D)total amount of the allocation base - total estimated indirect costs.

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Definitions:

Expertise

Specialized skill or knowledge in a particular field, gained through education, training, or experience.

Relationships

The way in which two or more people or entities are connected to each other, influencing their behavior and actions.

Fixed Pie

A concept in negotiations or economics that assumes the resources or benefits to be divided are limited and constant, with any gain by one side perceived as a loss by the other.

Negotiations

The process of discussing and arriving at a mutual agreement between parties with differing interests.