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Commerce · Q534

Costing

Graduate and Post Graduate · Commerce · question 534

Q534

In activity based costing method implementation, indirect costs are allocated by using the

A.
no cost pool
B.
One or two cost pools
Answer
C.
sustained tracing
D.
support tracing

Answer: Option B

Solution

Answer: Option B
Solution:
In activity based costing method implementation, indirect costs are allocated by using the One or two cost pools. Cost pools are commonly used for the allocation of factory overhead to units of production, as required by several accounting frameworks.