Which of the Following Is Not a Step in Allocating

question 120

Multiple Choice

Which of the following is not a step in allocating indirect costs to cost objects?

• A) Multiply the allocation rate by the weight of the cost driver.
• B) Trace direct costs to individual cost pools.
• C) Compute an allocation rate by dividing the total cost to be allocated by the total cost driver volume.
• D) All of the answers are steps in allocating indirect costs.

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Definitions:

Forgeries

The fraudulent making or alteration of a document with the intent to deceive or harm.

Acceptance

Within the realm of contract law, the process by which one accepts the conditions of a proposal, thus forming a legally binding agreement.

Draft

A preliminary version of a piece of writing or a plan for something, subject to revisions or edits.

Breach of Warranty

The violation of a guarantee or promise regarding the quality or condition of a product.