U.S. tax reporting requires end-of-period reconciliation between actual and applied indirect costs using the adjusted allocation-rate method or the proration method.

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This statement is true. The U.S. tax reporting requires end-of-period reconciliation between actual and applied indirect costs using the adjusted allocation-rate method or the proration method. Indirect costs are those expenses that are not directly associated with a specific project or product, such as rent, utilities, and administrative salaries. The adjusted allocation-rate method allocates indirect costs based on a predetermined rate, while the proration method allocates costs based on the proportion of each cost item to total costs. Both methods require a reconciliation between actual and applied costs to ensure accuracy and compliance with tax laws.

US Tax Reporting Requires End-Of-Period Reconciliation Between Actual and Applied