Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
1. Indirect costs are traced to cost objects.
2. Cost drivers are used to allocate indirect costs to cost objects.
3. An allocation rate is calculated by dividing the allocation base by the total cost to be allocated.
4. A cost driver must be identified for each cost pool that is to be allocated.
5. Depreciation on a building might be allocated to the departments sharing the building based on the number of square feet occupied by each department.