A grouping of individual cost items is known as
A) a cost pool.
B) an allocation base.
C) grouped direct costs.
D) grouped indirect costs.
E) a homogenous cost group.

Question

Quizplus · Accepted Answer

A grouping of individual cost items is known as a cost pool. Cost pools are used in activity-based costing to collect costs based on a similar characteristic or use. This makes it easier to allocate costs to specific activities or products.

A Grouping of Individual Cost Items Is Known as