In Determining the Amount of Indirect Costs to Be Allocated

question 26

Multiple Choice

In determining the amount of indirect costs to be allocated to the cost object the first step is:

• A) to develop a cost allocation formula
• B) to decide on the number of cost pools
• C) to select a cost driver
• D) to develop a predetermined cost rate

---

Definitions:

Higher Order Conditioning

A process in behavioral psychology where a conditioned stimulus is paired with a new neutral stimulus, creating a second-level conditioned response.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Operant Conditioning

A process of behavioral adjustment where the level of an action is modified through the application of rewards or punishments.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response tendency.