What is the reason for pooling costs?
A)To shift costs from low-volume to high-volume products.
B)It is a budgeting technique designed to accurately track fixed costs.
C)Determining a pool rate for all costs incurred by the same activity reduces the number of cost assignments required.
D)This procedure helps to determine which costs are directly related to production volume.
E)It simplifies departmental overhead costing procedures.

Question

Quizplus · Accepted Answer

Pooling costs helps to reduce the number of cost assignments required by determining a pool rate for all costs incurred by the same activity. This simplifies departmental overhead costing procedures.

What Is the Reason for Pooling Costs