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

---

Definitions:

Direct Democracy

A form of government in which citizens make decisions directly rather than through representatives, often via referendums or initiatives.

Electoral College

A body of electors established by the United States Constitution, tasked with electing the president and vice president based on the popular vote in each state.

Criminal Activity

Acts or behaviors that are punishable by law because they violate existing statutes or legal standards.

Government

The governing body of a nation, state, or community, responsible for making and enforcing laws and policies.