Although adding more cost pools to a costing system may improve the accuracy of product costing, this increase in accuracy must be judged against:
A) the cost of the product
B) the price of the product
C) the cost of developing and maintaining the additional cost pools
D) all of the above

Question

Quizplus · Accepted Answer

While adding more cost pools can improve product costing accuracy, it comes at a cost. The cost of developing and maintaining additional cost pools can be significant and must be weighed against the potential benefits. The cost and price of the product are not directly related to the decision of adding cost pools. Therefore, the correct answer is C, the cost of developing and maintaining additional cost pools.

Although Adding More Cost Pools to a Costing System May