For estimation of each cost pool for cost function, attention must be paid to

A. cost object hierarchy

B. management hierarchy

C. price hierarchy

D. cost hierarchy

Answer: Option D

Solution(By Examveda Team)

For estimation of each cost pool for cost function, attention must be paid to cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.