budgeted direct cost rate
budgeted indirect cost rate
expected indirect cost rate
direct budget percentage
Answer is Right!
Answer is Wrong!
The correct answer is: B. budgeted indirect cost rate.
The budgeted indirect cost rate is calculated by dividing the budgeted total cost in an indirect cost pool by the budgeted total quantity of the cost allocation base. The cost allocation base is a measure of activity that is used to assign indirect costs to products or services. The budgeted indirect cost rate is used to estimate the amount of indirect costs that will be incurred for a given level of activity.
The other options are incorrect because:
- A. budgeted direct cost rate is calculated by dividing the budgeted total direct costs by the budgeted total quantity of the cost allocation base.
- C. expected indirect cost rate is the estimated indirect cost rate that will be used to assign indirect costs to products or services in the future.
- D. direct budget percentage is the percentage of the total budget that is allocated to direct costs.