If the separate activities of design, process design, and prototyping are combined into one activity called "design" in an ABC system, management is forming one homogeneous cost pool.

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Combining separate activities like design, process design, and prototyping into one activity called "design" in an Activity-Based Costing (ABC) system means these varied activities are being treated as if they consume resources in a similar way, thus forming one homogeneous cost pool.

If the Separate Activities of Design, Process Design, and Prototyping