Question: A home office performs the payroll functions for Segments 1, 2, and 3 and incurs a total payroll expense of $500,000. The contractor allocates this

A home office performs the payroll functions for Segments 1, 2, and 3 and incurs a total payroll expense of $500,000. The contractor allocates this indirect cost using a base of the number of employees in each segment.

Does this practice comply with Cost Accounting Standard (CAS) 403?

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