The major cost pool(s)for activity-based costing is/are
A)the "plant."
B)the department.
C)the activity center.
D)the "plant" and the department.

Question

Quizplus · Accepted Answer

The major cost pool for activity-based costing is the activity center. Activity-based costing allocates costs to specific activities, and the activity centers are where those activities occur. Therefore, the cost pool for activity-based costing is the activity center, not the plant or department.

The Major Cost Pool(s)for Activity-Based Costing Is/are