Answer: Food costs were incorrectly included in the total direct cost base for calculating indirect costs.
Trend: Including distorting items like food costs can lead to inaccurate indirect cost calculations.
List: Review and adjust the cost base to exclude food costs for accurate indirect cost assessments.
Finding Text
The modified total direct cost base used to calculate indirect costs included food costs. Food costs are considered a distorting item and should have been excluded from the base calculation.