Within a business unit, 99% of the material costs are incurred by only 2% of the contracts. In addition, for this business unit, direct labor is not their only significant cost. According to Cost Accounting Standard (CAS) 410, which allocation base is most likely to result in the most equitable allocations of general and administrative (G&A) expenses to the contracts?

Answer rating: 100% (QA)

Introduction Cost Accounting Standards CAS play a crucial role in ensuring consistency and fairness in the allocation of costs within business units C... View the full answer