In relation to product costing the indirect cost rate is:
A) the rate used to assign indirect costs to the cost object
B) added to direct costs to calculate the full product cost
C) the input or activity that causes changes in total costs for a cost object
D) the method used to allocate the costs of each support department to the operating departments

Question

Quizplus · Accepted Answer

The indirect cost rate is used to assign indirect costs to a cost object, such as a product or service, to determine its total cost.

In Relation to Product Costing the Indirect Cost Rate Is