A systematic way that managers link an indirect cost or group of indirect costs to cost objects is known as:

Question

Quizplus · Accepted Answer

The systematic way that managers link an indirect cost or group of indirect costs to cost objects is known as cost allocation. It involves selecting a cost-allocation base (such as machine hours, direct labor hours, or square footage) and using it to allocate or assign the indirect costs to the cost objects. Therefore, the correct answer is E, cost-allocation base.

A Systematic Way That Managers Link an Indirect Cost or Group