Identifying homogeneous cost pools:
A)should include a cost-benefit analysis.
B)should include the input of management.
C)requires judgement and should be re-evaluated on a regular basis.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Identifying homogeneous cost pools should involve a cost-benefit analysis as it can help determine the costs and benefits of grouping certain costs together. Input from management is also important as they possess knowledge of how the organization operates. Finally, judgement is needed as there may be subjective factors to consider when grouping costs. It is also important to re-evaluate cost pools on a regular basis to ensure they are still relevant and useful.

Identifying Homogeneous Cost Pools