Equitable allocations of general and administrative expenses

Reference no: EM133650398

Question

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 expenses to the contracts?

Reference no: EM133650398

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