The budgeted indirect-cost rate is calculated ________.
A) at the beginning of the year
B) during the year
C) at the end of each quarter
D) at the end of the year

Question

Quizplus · Accepted Answer

The budgeted indirect-cost rate is calculated at the beginning of the year as it represents the estimated amount of indirect costs that the organization will incur over the course of the year. This rate is used to allocate indirect costs to products, services, or departments, and helps the organization to determine the overall cost of its operations. While adjustments may need to be made during the year based on actual costs incurred, the initial budgeted indirect-cost rate provides a baseline for these calculations.

The Budgeted Indirect-Cost Rate Is Calculated ________