Indirect Costs Allocation MCQ (Multiple Choice Questions) PDF Download

An under allocated indirect cost is also called

1. under applied indirect cost
2. under absorbed indirect cost
3. absorbed indirect cost
4. both a and b

In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as

1. under allocated indirect cost
2. over allocated direct cost
3. over allocated budget
4. under allocated budget

If an actual indirect cost incur is $35000 and the indirect cost allocated is $43000, then the under allocated indirect cost will be

1. $78,000
2. −$78000
3. −$8000
4. $8,000

If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be

1. $48,000
2. −$2000
3. $2,000
4. −$48000

If an allocated indirect cost is $1500 and the actual incurred indirect cost is $1200, then this is classified as

1. applied indirect cost
2. applied direct cost
3. incurred indirect cost
4. over allocated indirect cost