An Indirect Cost Is Linked to a Cost Object by Identification

question 39

Multiple Choice

An indirect cost is linked to a cost object by identification of an appropriate:

• A)cost driver.
• B)activity hierarchy.
• C)cost pool.
• D)relevant cost.

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Definitions:

Instrument

A formal document, especially one that legally records a fact, act, or agreement.

Enforceable Contract

A legally binding agreement that can be upheld and compelled in a court of law.

Negotiability

The quality of a financial instrument that allows it to be transferred from one party to another with minimal legal restrictions.

Sum Certain

A specified, fixed amount of money that is agreed upon in a financial or legal document, leaving no ambiguity regarding the amount.