A cost pool is:
A) a collection of costs to be assigned.
B) the joint result of several subunit activities.
C) the primary function of a responsibility accounting system.
D) a performance report of the lowest level manager.

Question

Quizplus · Accepted Answer

A cost pool is a collection of costs that are grouped together because they have common characteristics and are to be assigned to a specific activity or product. Cost pools are used in activity-based costing and help in identifying the cost drivers that lead to the incurrence of costs.

A Cost Pool Is