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Interviewer's salary (This answer is incorrect!)

The correct answer is: Changes in the organization's public image

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15y ago

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What is the process of assigning indirect costs?

Cost allocation...


What two cost elements are required to calculate an indirect cost rate?

Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.


What two costs elements are required to calculate an indirect cost rate?

Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.


What are the direct and indirect costs of a work comp claim?

A direct cost example is the medical expense claim, and an example of an indirect cost is the lost productivity of the injured employee AND the staff who has to process the claim.


Is indirect labor a variable cost?

If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.


Is research development cost direct or indirect cost?

Research and development cost is indirect cost as this cost is not directly required to manufacturing the production units and that’s why always an indirect cost.


1 The process of assigning indirect costs is called?

The process of assigning indirect costs is called cost allocation. It involves distributing indirect costs, such as overhead expenses, to various departments, products, or projects based on a systematic approach. This ensures that each cost object bears a fair share of the total indirect costs incurred by the organization. Proper allocation is essential for accurate financial reporting and decision-making.


Is advertising expense direct or indirect cost?

indirect


Are indirect materials variable or fixed cost?

Indirect


Is indirect cost a prime cost?

No


Can cost function measure direct cost as well as indirect cost?

yes cost function measures the direct costs along with indirect cost.


What is the process of calculating an indirect cost rate?

Calculating an indirect cost rate involves several steps. First, identify and accumulate total indirect costs, which are expenses not directly tied to a specific project, such as administrative salaries and utilities. Next, determine the appropriate allocation base—often total direct costs or direct labor costs—over which these indirect costs will be spread. Finally, divide the total indirect costs by the chosen allocation base to derive the indirect cost rate, expressed as a percentage.