1C1C INDIRECT AND COMMON COSTS OFTEN MAKE UP A SIGNIFICANT PORTION OF...

153. CSO: 1C1a LOS: 1C1c

Indirect and common costs often make up a significant portion of the cost of a product.

All of the following are reasons for indirect cost allocation to cost objects except to

a. reduce total costs identified with products.

b. measure income and assets for external reporting purposes.

c. justify costs for reimbursement purposes.

d. provide information for economic decision making.