Final answer:
The cost-allocation base is indeed a systematic way to link indirect costs to cost objects, which is true. This is crucial in business for accurate cost distribution and comparison among different products or services.
Step-by-step explanation:
The statement that the cost-allocation base is a systematic way to link an indirect cost or group of indirect costs to cost objects is true. In the context of business and accounting, a cost-allocation base serves as the foundation for distributing indirect costs to different products, services, or departments within an organization. This allocation helps in accurately reflecting the costs associated with the production of goods or services. Mathematical models and other math connections are used to predict costs for various approaches and solutions throughout the design and implementation processes. These models are essential to ensure that costs related to materials, fabrication, manufacturing, operation, and maintenance are allocated correctly and normalized for comparison. An example of a normalized cost comparison could be analyzing the cost per thousand gallons of water among different water treatment options.