The budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base, to calculate ___________?
Correct answer: B. budgeted indirect cost rate
- A. expected indirect cost rate
- B. budgeted indirect cost rate
- C. expected direct cost rate
- D. budgeted direct cost rateSearch Public Records
Explanation
Dividing budgeted indirect costs by the budgeted quantity of the allocation base gives the budgeted indirect cost rate. This rate is used to apply overhead during the period.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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