Which of the following are reasons for using longer periods, such as a year, to calculate indirect cost rates.

Question

Quizplus · Accepted Answer

The numerator reason for using longer periods is that it provides a more accurate reflection of actual indirect costs incurred over a longer period of time. The denominator reason is that using a longer period reduces fluctuations in the allocation base caused by short-term events, resulting in a more stable indirect cost rate. Therefore, both reasons support the use of longer periods for calculating indirect cost rates.

Which of the Following Are Reasons for Using Longer Periods