The Budgeted Indirect-Cost Rate for Each Cost Pool Is Computed

question 28

Multiple Choice

The budgeted indirect-cost rate for each cost pool is computed as ________.

• A) budgeted annual indirect costs divided by budgeted annual quantity of cost allocation base
• B) budgeted annual quantity of cost allocation base divided by budgeted annual indirect costs
• C) actual annual indirect costs divided by budgeted annual quantity of cost allocation base
• D) budgeted annual indirect costs divided by budgeted actual quantity of cost allocation base

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Definitions:

Connecting Term

A word or phrase that joins sentences, phrases, or concepts together in a logical or meaningful way.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping.

Sears

An American chain of department stores founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century, historically significant for its mail-order catalogs.

Predicate

An element of a sentence or clause where a verb is present and it communicates information about the subject.