An example of a numerator reason for calculating annual indirect-cost rates includes:

Question

Quizplus · Accepted Answer

The numerator in the calculation of annual indirect-cost rates includes all of the costs that are not directly related to production, such as taxes and snow-removal costs. Option B states payment of estimated taxes four times a year, which is a reason for calculating indirect costs. Option C states higher snow-removal costs during the winter, which is another example of an indirect cost. Therefore, option D is the correct choice because it includes both B and C as numerator reasons. Option A is incorrect because it is related to production and would not be included in the numerator calculation.

An Example of a Numerator Reason for Calculating Annual Indirect-Cost