One department indirect-cost rate is sufficient when:
A)activities relate to more than one level of the cost hierarchy
B)product costs are significantly cross-subsidized
C)the same allocation base is appropriate for all departmental activities
D)it is a service department

Question

Quizplus · Accepted Answer

A single indirect-cost rate is sufficient when the same allocation base can be used for all activities within the department, ensuring consistent and fair allocation of costs.

One Department Indirect-Cost Rate Is Sufficient When