A(n) _____ is a collection of overhead costs for which cost variations can be explained by a single cost driver.
A) cost objective
B) homogeneous cost pool
C) allocation base
D) heterogeneous cost pool

Question

Quizplus · Accepted Answer

A homogeneous cost pool is a group of overhead costs that have a single cost driver and can be explained by that driver. This allows for a more accurate allocation of costs to the products or services that caused them, improving cost accounting and decision-making. Choice A (cost objective) and Choice C (allocation base) are related concepts, but do not specifically refer to a collection of overhead costs with a single cost driver. Choice D (heterogeneous cost pool) is the opposite of a homogeneous cost pool, referring to a group of overhead costs with different cost drivers that cannot be explained by a single driver.

A(n) _____ Is a Collection of Overhead Costs for Which