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Commerce · Q533

Costing

Graduate and Post Graduate · Commerce · question 533

Q533

Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as

A.
heterogeneous price pool
B.
homogenous cost pool
Answer
C.
heterogeneous cost pool
D.
homogenous price pool

Answer: Option B

Solution

Answer: Option B
Solution:
Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as homogenous cost pool. A cost pool is a grouping of individual costs, typically by department or service center.