Which of the following is a collection of overhead costs related to a cost object?
A) Cost driver
B) Cost function
C) Cost equation
D) Cost pool

Question

Quizplus · Accepted Answer

A cost pool is a grouping or collection of individual overhead costs that are related to a particular cost object, such as a specific product or department. These costs can then be allocated or assigned to the cost object using a cost driver or other allocation method. A cost driver is a variable, such as machine hours or direct labor hours, that is used to allocate the total cost pool to individual cost objects. A cost function and cost equation refer to the mathematical relationship between a cost and its various drivers.

Which of the Following Is a Collection of Overhead Costs