Multiple Choice
In relation to product costing the indirect cost rate is:
A) the rate used to assign indirect costs to the cost object
B) added to direct costs to calculate the full product cost
C) the input or activity that causes changes in total costs for a cost object
D) the method used to allocate the costs of each support department to the operating departments
Correct Answer:

Verified
Correct Answer:
Verified
Q45: Jones Plumbing estimates that its overhead costs
Q46: Direct costs do not have a cause
Q47: Regardless of method adopted the first step
Q48: Paws Pet Resort and Spa is located
Q49: Cost benefit analysis is used to determine
Q51: A cost driver or allocation base provides
Q52: Before determining whether a cost is direct
Q53: The first step in allocating indirect costs
Q54: The cost driver that is a volume
Q55: One limitation of support department cost allocations