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
C. heterogeneous cost pool
D. homogenous price pool
Answer: Option B
Solution(By Examveda Team)
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.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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