A cost pool is:
A)a collection of costs to be assigned.
B)almost always the combined result of decisions made by different responsibility center managers.
C)the primary function of a responsibility accounting system.
D)the amount of cost that has been allocated, say, 10%, to a user department.
E)the tool used to allocate cost dollars to user departments.

Question

Quizplus · Accepted Answer

A cost pool is a collection of costs to be assigned. It is a grouping of individual costs that are related in some way, and it is used as the basis for allocating costs to cost objects (such as products, services, or departments). A cost pool could include direct costs, indirect costs, or both, and it is typically identified based on the activities that incur the costs.

A Cost Pool Is