Which of the following statements about cost pools is true?
A)The costs in each of the cost pools should be homogeneous or similar.
B)The number of cost pools must be the same as the number of products produced by a company.
C)Only four different kinds of costs may be included in a single cost pool.
D)Each cost pool should include the costs of one expense account.

Question

Quizplus · Accepted Answer

Cost pools are groupings of costs that are homogeneous or similar in nature. The costs within a cost pool should be related to a particular activity or function in the organization. Therefore, statement A is true. Statements B, C, and D are incorrect as they do not accurately reflect the nature and purpose of cost pools.

Which of the Following Statements About Cost Pools Is True