For each cost pool,a(n)________ is identified that is the primary factor causing overhead costs to increase during the accounting period.
A)activity
B)job
C)level
D)process

Question

Quizplus · Accepted Answer

Cost pools are groups of overhead costs that are related to specific activities or processes within a company. For each cost pool, an activity is identified as the primary factor that causes overhead costs to increase during the accounting period. Cost drivers are then used to allocate the overhead costs to the products or services that use the activities. Therefore, the best choice for the identified factor in each cost pool is A) activity.

For Each Cost Pool,a(n)________ Is Identified That Is the Primary