When Discussing Costing the Indirect Cost Rate Is

question 18

Multiple Choice

When discussing costing the indirect cost rate is:

• A) the rate used to assign indirect costs to the cost object
• B) the total costs incurred for a cost object
• C) the input or activity that causes changes in total costs for a cost object
• D) the method used to allocate the costs of each support department to the operating departments

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Definitions:

Telephone Calls

A form of verbal communication or data transmission over a distance through the use of a network specifically designed for this purpose.

Randomly

In a manner lacking any predictable pattern or plan, used in statistical sampling to ensure that every individual or element has an equal chance of selection.

Wavenumber

A measure of the number of wave cycles per unit distance, often used in physics and chemistry to describe the wavelengths of light and other forms of electromagnetic radiation.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.