Cost allocation requires pooling of overhead costs and the selection of a cost driver.

Name: Cost allocation requires pooling of overhead costs and the selection of a cost driver.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost allocation involves the process of accumulating overhead costs and assigning them to specific cost objects. The first step in this process is to pool overhead costs and then identify a cost driver that is the basis for assigning these costs to cost objects. Therefore, the statement is true.

Cost Allocation Requires Pooling of Overhead Costs and the Selection