Using Department Indirect-Cost Rates to Allocate Costs Will Result in Results

Multiple Choice

Using department indirect-cost rates to allocate costs will result in results similar to ABC if:

A) a single activity accounts for a sizable portion of the costs of the department
B) several activities cause a sizable portion of the costs of the department
C) a single activity accounts for a small portion of the costs of the department
D) several activities cause a small portion of the costs of the department