The __________________ approach re-states all indirect costs using actual cost rates rather than budgeted cost rates.

Question

Quizplus · Accepted Answer

The adjusted cost-driver rate approach recalculates indirect costs using actual cost rates instead of budgeted ones, making it distinct from normal, absorption, or variable costing methods, which typically use predetermined or budgeted rates for allocating indirect costs.

The __________________ Approach Re-States All Indirect Costs Using Actual Cost