Which of the following are reasons for using longer periods, such as a year, to calculate indirect cost rates?
A) shorter the period, the greater is the influence of seasonal patterns on the amount of costs
B) longer the period, the greater is the influence of seasonal patterns on the amount of costs
C) shorter the period, the smaller is the influence of seasonal patterns on the amount of opportunity costs
D) longer the period, the smaller is the influence of seasonal patterns on the amount of opportunity costs

Question

Quizplus · Accepted Answer

Shorter periods are more likely to be affected by seasonal patterns, which can lead to inaccurate indirect cost rates.

Which of the Following Are Reasons for Using Longer Periods