Final answer:
It's generally false that separate indirect-cost rates should be calculated each month to smooth fluctuating levels of output; companies might opt for longer periods based on their cost structure and decision-making needs.
Step-by-step explanation:
To address whether separate indirect-cost rates should be calculated for each month to smooth fluctuating levels of output, it is generally false that this needs to be done on a monthly basis. While indirect-cost rates are important for understanding a firm's expenses, such granularity might not reflect meaningful variations and could result in unnecessary complexity. Companies might choose longer periods, like quarterly or yearly, depending on the stability of their operations and the predictability of costs. Breaking down costs into fixed and variable components is crucial, yet the frequency of calculating indirect-cost rates should align with the specific needs of the business and the decision-making processes involved.