When individual activities within a cost pool have a similar relationship with the cost driver, those costs:
A)need to be reallocated
B)need multiple cost drivers
C)are considered a homogeneous cost pool
D)are considered an allocated cost pool

Question

Quizplus · Accepted Answer

A homogeneous cost pool refers to a group of individual activities that have a similar relationship with the cost driver. Since the costs within this pool have a consistent pattern in relation to the cost driver, they can be allocated using a single cost driver. Therefore, there is no need for reallocation or multiple cost drivers.

When Individual Activities Within a Cost Pool Have a Similar