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

A. no cost pool

B. One or two cost pools

C. sustained tracing

D. support tracing

Answer: Option B

Solution(By Examveda Team)

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.