A cost pool is a collection of costs that are related to the same or similar activity.

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A cost pool is a grouping of costs that are associated with a specific activity or process, such as production, marketing, or research and development. By collecting costs into a common pool, a company can more easily allocate those costs to specific products, services, or departments. This helps to ensure that costs are fairly and accurately distributed throughout the organization, which can improve decision-making and overall profitability.

A Cost Pool Is a Collection of Costs That Are