There Is No Best Cost Allocation Methodology for a Human

Multiple Choice

There is no best cost allocation methodology for a human service agency or program to use in allocating indirect costs. Which of the following statements is INCORRECT?

A) The total direct costs methodology is the simplest approach to implement.
B) The direct labor costs methodology is said to be superior approach then the majority of an agency's programs are labor intensive.
C) The direct costing method is said to be the most accurate for of cost allocation.
D) The indirect costing method is used when labor is intensive but labor hours are not.