Cost pools can range from broad,such as all manufacturing-plant costs,to narrow,such as the costs of operating metal-cutting machines.

Question

Quizplus · Accepted Answer

This statement is true. Cost pools refer to groupings of related costs for the purpose of allocating them to cost objects, and they can vary in their size and level of detail. A cost pool could include all costs associated with a particular function or department, or it could focus on a specific type of activity or resource use. The examples given in the statement illustrate the range of options for defining cost pools.

Cost Pools Can Range from Broad,such as All Manufacturing-Plant Costs,to