Question

Which of the following methods of indirect costs is based on convenience or some assumed linkage, and reduces the overall accuracy of the cost assignments?

a.direct tracing
b.driver tracing
c.allocation
d.All of these choices are correct.

Answer 1

The method of indirect costs based on convenience or assumed linkage that reduces the overall accuracy of cost assignments is: d. All of these choices are correct.

Step-by-step explanation:

The correct answer to the question is d. All of these choices are correct. This method of allocation is based on convenience or some assumed linkage, and it reduces the overall accuracy of cost assignments. It is a less precise method compared to direct tracing or driver tracing because it does not rely on direct or measurable factors.