When individual activities within a cost pool have a similar relationship with the cost driver,those costs:
A)need to be reallocated.
B)need multiple cost drivers.
C)are considered an allocated cost pool.
D)are considered a homogeneous cost pool.

Question

Quizplus · Accepted Answer

When individual activities within a cost pool have a similar relationship with the cost driver, they are considered a homogeneous cost pool. This means that the costs can be allocated using a single cost driver without the need for reallocation or multiple cost drivers.

When Individual Activities Within a Cost Pool Have a Similar