When individual activities within a cost pool have a similar relationship with the cost driver,the cost pool ________.
A) is not considered for customer-profitability analysis
B) need multiple cost drivers
C) is considered a homogeneous cost pool
D) is considered an allocated cost pool

Question

Quizplus · Accepted Answer

When individual activities within a cost pool have a similar relationship with the cost driver, the cost pool is considered a homogeneous cost pool. This means that the cost driver can be applied uniformly to all activities within the cost pool, making it easier to allocate costs accurately.

When Individual Activities Within a Cost Pool Have a Similar