Which of the Following Is the First Step in the Cost-Allocation

question 177

Multiple Choice

Which of the following is the first step in the cost-allocation decision process?

• A)Calculate the cost-allocation rate for each indirect cost pool.
• B)Identify the purpose of the cost allocation.
• C)Identify the direct inputs that are already measured.
• D)Identify the relevant indirect costs included in the cost pool(s)or numerator(s).
• E)Analyze the alternatives and select the best one for the denominator.

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Definitions:

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