Which of the following is not a
A) Costs that have been pooled for one purpose may require disaggregation for a different purpose.
B) Pooling costs that have different cost drivers may result in unreliable cost allocation.
C) A single cost pool will have more than one cost driver for different cost objects.
D) Pooled costs may require disaggregation when allocating costs for different purposes.

Question

Quizplus · Accepted Answer

A single cost pool will typically have one primary cost driver for allocating costs to a specific cost object. While additional cost drivers may be used for different purposes, having multiple primary cost drivers for the same cost pool can cause confusion and inaccurate cost allocation. Therefore, option C is not a valid statement. Options A, B, and D are all accurate statements regarding cost pooling and allocation.

Which of the Following Is Not a