When all of a cost pool's individual activities have the same or similar relationships between the cost driver and the costs of the activity, it is considered
A) a beneficial cost pool.
B) a heterogeneous cost pool.
C) a homogeneous cost pool.
D) a similar cost pool.
E) an assigned cost pool.

Question

Quizplus · Accepted Answer

When all activities within a cost pool share a similar relationship between the cost driver and the cost of the activity, it is considered a homogeneous cost pool. This allows for more accurate and efficient allocation of costs to cost objects. A heterogeneous cost pool, on the other hand, includes activities with different cost driver relationships, making allocation more difficult and less accurate. The other answer choices are not applicable or relevant to the concept of cost pool homogeneity.

When All of a Cost Pool's Individual Activities Have the Same