demand allocation base
supply allocation base
cost allocation base
price allocation base
Answer is Right!
Answer is Wrong!
The correct answer is: A. demand allocation base.
An indirect cost is a cost that cannot be easily or directly attributed to a particular product or service. It is a cost that is incurred in the production of multiple products or services, and it is not possible to determine how much of the cost should be allocated to each product or service.
A demand allocation base is a measure of the demand for a product or service. It is used to allocate indirect costs to products or services based on the amount of demand for each product or service.
The other options are incorrect because:
- A supply allocation base is a measure of the supply of a product or service. It is not used to allocate indirect costs.
- A cost allocation base is a measure of the cost of a product or service. It is not used to allocate indirect costs.
- A price allocation base is a measure of the price of a product or service. It is not used to allocate indirect costs.