An example of an activity cost pool is
A) machine hours.
B) setting up machines.
C) number of setups.
D) number of inspections.

Question

Quizplus · Accepted Answer

Setting up machines is a specific activity that can be measured and tracked as a cost pool. Machine hours and number of inspections are broad categories that can include multiple activities and would not be as effective as a cost pool. While number of setups is related to setting up machines, B is a more specific and accurate choice.

An Example of an Activity Cost Pool Is