If indirect-cost rates are calculated monthly, distortions might occur because of ________.
A) rental costs paid monthly
B) property tax payments made in July and December
C) routine monthly preventive-maintenance costs that benefit future months
D) salary hikes at the beginning of the financial year

Question

Quizplus · Accepted Answer

Property tax payments made in July and December are not spread evenly throughout the year, which can cause distortions in monthly indirect-cost rates.

If Indirect-Cost Rates Are Calculated Monthly, Distortions Might Occur Because