An Example of a DENOMINATOR REASON for Calculating Annual Indirect-Cost

question 199

Multiple Choice

An example of a DENOMINATOR REASON for calculating annual indirect-cost rates includes:

• A)higher heating bills in the winter.
• B)higher levels of output demanded during the summer months from an ice cream factory.
• C)semi-annual insurance payments in March and September.
• D)All of these answers are correct.

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Definitions:

Batch Setup

Batch setup involves the processes and activities necessary to prepare equipment and facilities for the production of a batch of goods.

Human Resource Management

The strategic approach to the effective management of people in an organization to help the business gain a competitive advantage.

Facility-level Activity

Activities and costs incurred that support the entire company and cannot be traced to individual products or services.

Product-level Activity

Actions or operations that are conducted to support or produce specific products, often analyzed in activity-based costing.