One reason that entities allocate indirect costs to cost objects is to encourage the use of central resources.

Name: One reason that entities allocate indirect costs to cost objects is to encourage the use of central resources.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Indirect costs are allocated to cost objects to ensure that all costs are accounted for and that the cost of using central resources is reflected in the cost of the products or services provided.

One Reason That Entities Allocate Indirect Costs to Cost Objects