How Do We Assign Indirect Costs to Cost Objects

question 41

Multiple Choice

How do we assign indirect costs to cost objects?

• A) based on the proportion of indirect costs to total costs
• B) based on the proportion of indirect costs to direct costs
• C) in proportion to the cost object's use of a cost-allocation base
• D) based on the amount of direct cost used by the cost object

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Definitions:

Identified

Recognized as being a particular person or thing.

Angry

A strong feeling of displeasure or hostility, often resulting from perceived wrong, injury, or frustration.

Morally Correct

Acting in accordance with ethical principles or accepted standards of right and wrong.

Fear Of Punishment

A psychological state where an individual anticipates negative consequences or suffering due to their actions or behaviors, which can affect decision-making and behavior modification.