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:

Simplify

To alter an expression into its most reduced or simplest form, making it easier to understand or solve.

Least Common Multiple

The smallest positive integer that is a multiple of two or more integers.

Expressions

Mathematical phrases that can represent numbers, operations, and/or variables but do not include an equality sign.

Expressions

Mathematical phrases that can contain numbers, variables, operators and can be evaluated to a value.