Which of the following functions would not be considered an appropriate cost pool for an Activity-Based Costing analysis?
A) Payroll Processing
B) Processing Accounts Receivable
C) Equipment Maintenance
D) Product Development
E) All of the above are appropriate cost pools

Question

Quizplus · Accepted Answer

All of the options listed (Payroll Processing, Processing Accounts Receivable, Equipment Maintenance, and Product Development) are considered appropriate cost pools in Activity-Based Costing (ABC) analysis. ABC methodology aims to allocate costs based on activities that drive costs, and each of these areas involves specific activities that consume resources, making them suitable for analysis in this context.

Which of the Following Functions Would Not Be Considered an Appropriate