Due to the decline in indirect costs in most companies,allocating indirect costs is no longer necessary to determine accurate product costs.

Question

Quizplus · Accepted Answer

Allocating indirect costs is still necessary to determine accurate product costs, even though indirect costs have declined in many companies. While the proportion of indirect costs to total costs may be lower, indirect costs still exist and need to be allocated properly to reflect the true cost of producing a product.

Due to the Decline in Indirect Costs in Most Companies,allocating