Activity cost pools are factory overhead costs initially budgeted for activities, such as machine usage, inspections, moving, production setups, and engineering activities.

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Activity cost pools are categories of costs associated with particular activities, including those mentioned like machine usage, inspections, moving, production setups, and engineering activities, and are part of the broader category of factory overhead costs. They are used in activity-based costing to allocate costs more accurately to products or services.

Activity Cost Pools Are Factory Overhead Costs Initially Budgeted for Activities