Budgeted indirect-cost rate

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Budgeted indirect-cost rate is budgeted annual indirect costs in a cost pool divided by the budgeted annual quantity of the cost allocation base.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Budgeted indirect-cost rate. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quantity of the cost allocation base.

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