What do homogeneous cost pools lead to?
A)The need for more cost drivers
B)More accurate costs of a given cost object
C)More resources being assigned to that cost object
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

Homogeneous cost pools lead to more accurate costs of a given cost object because costs are grouped together based on similarity, reducing the likelihood of allocating unrelated costs. Both A and C are not correct because homogeneous cost pools do not necessarily lead to the need for more cost drivers or more resources being assigned to a cost object.

What Do Homogeneous Cost Pools Lead To