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:

Education And Communication

The process of imparting knowledge, skills, and information through various means, including dialogue and instruction.

Employee Resistance

The opposition or pushback from employees towards changes or policies introduced in the workplace.

Proposed Change

A recommendation to alter a process, system, product, or organization with the aim of improving efficiency or effectiveness.

Shared Power Strategy

a cooperative approach to decision-making and leadership where control and authority are distributed among multiple stakeholders.