When there is no direct connection between revenues and costs,the costs are systematically allocated among the periods benefited from the costs.

Question

Quizplus · Accepted Answer

This statement is true. When there is no direct connection between revenues and costs, such as with indirect costs, they are allocated among the periods that benefited from those costs. This is typically done through various allocation methods, such as using a percentage of total revenue or number of hours worked in a given period.

When There Is No Direct Connection Between Revenues and Costs,the