Each individual indirect cost should be assigned to one activity when forming activity cost pools.

Name: Each individual indirect cost should be assigned to one activity when forming activity cost pools.
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Question

Quizplus · Accepted Answer

Indirect costs are often allocated to multiple activities in activity-based costing, as they are not directly traceable to a single activity. This allows for a more accurate distribution of costs across all activities that incur them.

Each Individual Indirect Cost Should Be Assigned to One Activity