Indirect costs should not be pooled unless they share a common cost driver.

Question

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Indirect costs should not be grouped together unless they have a common cost driver that can be used to allocate the costs. This helps ensure that the costs are accurately assigned to the specific cost objects or activities that caused them. If indirect costs are pooled together indiscriminately, it can lead to distorted cost estimates and inaccurate decision-making.

Indirect Costs Should Not Be Pooled Unless They Share a Common