Homogeneous cost pool leads to ________.
A) more accurate costs of a given cost object
B) more resources being assigned to that cost object
C) the need for more cost drivers
D) the need for different cost allocation bases to allocate the costs

Question

Quizplus · Accepted Answer

Homogeneous cost pool refers to grouping together costs that have similar characteristics or use the same cost driver. This results in more accurate costs of a given cost object as the costs are allocated based on a common allocation base. It does not necessarily lead to more resources being assigned to that cost object or the need for more cost drivers or different cost allocation bases.

Homogeneous Cost Pool Leads to ________