The cost pool category, which have the similar cause and effect relationship, with each cost driver uses as an allocation base is classified as __________?
Correct answer: B. homogenous cost pool
- A. heterogeneous price pool
- B. homogenous cost pool
- C. heterogeneous cost pool
- D. homogenous price pool
Explanation
A homogeneous cost pool contains costs with similar cause-and-effect relationships, so one cost driver can reasonably serve as its allocation base. Heterogeneous pools combine costs influenced by different drivers.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The type of costs that cannot be traced for individual products but help in supporting an organization are classified as ___________?
The hierarchy which is based on different types of cost allocation and drivers, to categorize cost pool activity is classified as __________?
The costs of undertaken activities is to support individual products and are known as __________?
The costs of all the activities for a group of products, rather than individual product can be classified as ___________?
In costing of project, the wages paid to workers for the unproductive work at the time of material shortage is termed as __________?
If the direct material cost is $85000 and direct manufacturing labor is $25000, then prime cost would be _________?