Each indirect-cost pool of a manufacturing firm:
A)relates to one cost object.
B)utilises a separate cost-allocation rate.
C)is a subset of total indirect costs.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Each indirect-cost pool of a manufacturing firm is a subset of total indirect costs and relates to one cost object. In order to allocate the costs accurately, each pool is assigned a separate cost-allocation rate. Therefore, all of the given options are correct.

Each Indirect-Cost Pool of a Manufacturing Firm