An example of a numerator reason for calculating annual indirect-cost rates includes ________.
A) fewer production workdays in a month
B) cost of raw materials purchased
C) higher snow-removal costs during the winter
D) the number of units produced

Question

Quizplus · Accepted Answer

Numerator reasons for calculating annual indirect-cost rates involve factors that directly affect the overhead costs of production, such as the number of units produced. Options A, B, and C are factors that may affect overall production costs but are not directly related to overhead costs.

An Example of a Numerator Reason for Calculating Annual Indirect-Cost