Indirect costs are often pooled,and not allocated individually because:
A) individual allocation would be more timely.
B) individual allocation would be more accurate.
C) individual allocation would be tedious.
D) the benefits of individual allocation of indirect costs are greater than the costs.

Question

Quizplus · Accepted Answer

Indirect costs are usually pooled because individually allocating them can be tedious and time-consuming. The benefits of individual allocation are unlikely to be worth the effort, and the resulting information might not be significantly more accurate anyway. Therefore, it is usually more practical to simply allocate indirect costs to cost centers or products based on some predetermined method, rather than trying to allocate them to each individual item or activity that might have consumed them.

Indirect Costs Are Often Pooled,and Not Allocated Individually Because