Which Formula Best Represents the First Step Used to Allocate

question 28

Multiple Choice

Which formula best represents the first step used to allocate an indirect cost to a cost object?

• A) Total cost to be allocated divided by cost driver
• B) Cost driver divided by allocation rate
• C) Cost driver divided by total cost to be allocated
• D) Allocation rate divided by total cost to be allocated

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Definitions:

Contract for the International Sale of Goods

A set of rules governing the sale of goods between parties based in different countries, aiming to provide a common legal framework.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform set of rules for the international sale of goods.

Writing Requirement

A legal requirement that certain kinds of contracts or agreements must be memorialized in written form to be legally binding.

Confirming Memo

A written document that summarizes the terms of an agreement or transaction between parties after an oral agreement has been made.