As the amount of work performed by a cost pool is reduced, resource costs classified as avoidable will continue unchanged.

Name: As the amount of work performed by a cost pool is reduced, resource costs classified as avoidable will continue unchanged.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Avoidable costs are those that can be eliminated if a particular activity or volume of work is reduced or stopped. Therefore, if the amount of work performed by a cost pool is reduced, avoidable costs should decrease accordingly.

As the Amount of Work Performed by a Cost Pool