The costs of a particular department should not be split up among activity cost pools in an activity-based costing system.

Name: The costs of a particular department should not be split up among activity cost pools in an activity-based costing system.
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Question

Quizplus · Accepted Answer

In an activity-based costing system, costs of a particular department are indeed split up among different activity cost pools based on the activities performed within that department, to more accurately allocate costs to products or services.

The Costs of a Particular Department Should Not Be Split