Q655
Systematic way of linking group of indirect cost to a cost object is classified as
A.
linked allocation base
B.
direct allocation base
C.
indirect allocation base
D.
cost allocation base
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Systematic way of linking group of indirect cost to a cost object is classified as cost allocation base. An allocation base is the basis upon which an entity allocates its overhead costs.