Each indirect cost should be allocated to products individually to provide the most useful cost information.

Name: Each indirect cost should be allocated to products individually to provide the most useful cost information.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

Indirect costs are not directly traceable to a single product, so they are allocated based on a predetermined overhead rate or cost driver, rather than individually to products. This approach provides a more practical and efficient method for assigning costs to products.

Each Indirect Cost Should Be Allocated to Products Individually to Provide