The end-of-year adjustments are the same for both under- and overallocated direct costs are made in the same way as the indirect costs.

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End-of-year adjustments for both under- and overallocated direct costs are made in the same way as the indirect costs. This is because the main objective is to ensure that all costs are accurately recorded and allocated to the appropriate cost centers, regardless of whether they are direct or indirect. Therefore, the same principles and procedures apply to both types of costs.

The End-Of-Year Adjustments Are the Same for Both Under- and Overallocated