Examveda
Examveda

Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate

A. expected indirect cost rate

B. expected direct cost rate

C. budgeted indirect cost rate

D. budgeted direct cost rate

Answer: Option C

Solution(By Examveda Team)

Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate budgeted indirect cost rate. The budgeted indirect cost rate formula is calculated by dividing the budgeted annual indirect costs by the budgeted annual quantity of the cost allocation base.

This Question Belongs to Commerce >> Costing

Join The Discussion

Related Questions on Costing