Activity-based cost systems create
A)one large cost pool.
B)homogeneous activity-related cost pools.
C)activity-cost pools with a broad focus.
D)activity-cost pools containing many direct costs.
E)heterogenous activity-related cost pools.

Question

Quizplus · Accepted Answer

Activity-based cost systems create homogeneous activity-related cost pools, which group together costs that are related to a particular activity or process. This allows for more accurate allocation of costs to products or services based on the specific activities that are required to produce them. The other options are not accurate descriptions of activity-based cost systems.

Activity-Based Cost Systems Create