Which of the following is False concerning homogeneous cost pools?
A) They enable more accurate product, service and customer costs to be obtained.
B) The cost allocations using the pool will be the same as would be made if each individual activity in the pool were allocated separately.
C) The greater the degree of homogeneity, the fewer cost pools are required to accurately explain differences in how products use resources.
D) All activities in the pool have the same or similar cause-and-effect relationship between the cost allocator and the costs of the activity.
E) All activities in the pool have a unique and different benefits-received relationship between the cost allocator and the costs of the activity.

Question

Quizplus · Accepted Answer

The statement that all activities in a homogeneous cost pool have a "unique and different benefits-received relationship" is false. In fact, all activities in a homogeneous cost pool have the same or similar benefits-received relationship between the cost allocator and the costs of the activity, which is why they are grouped together in the pool.

Which of the Following Is False Concerning Homogeneous Cost Pools