If a company has three cost pools,it should have three different cost allocation bases.

Question

Quizplus · Accepted Answer

If a company has three cost pools, it would be logical to have three different cost allocation bases in order to accurately allocate the costs to the appropriate departments. This is particularly important if the allocation bases differ between departments or if there are differences in hours or rates. Therefore, the statement is true.

If a Company Has Three Cost Pools,it Should Have Three