[amp_mcq option1=”heterogeneous price pool” option2=”homogenous cost pool” option3=”heterogeneous cost pool” option4=”homogenous price pool” correct=”option2″]<\/p>\n
The correct answer is: B. homogenous cost pool<\/strong><\/p>\n A cost pool is a group of costs that are incurred for a similar purpose. For example, a company might have a cost pool for the costs of manufacturing its products, and another cost pool for the costs of marketing its products.<\/p>\n A cost driver is a factor that causes costs to increase or decrease. For example, the number of units produced might be a cost driver for the costs of manufacturing a product.<\/p>\n A homogenous cost pool is a cost pool in which all of the costs have a similar cause and effect relationship with the cost driver. For example, the costs of direct materials and direct labor would be considered to be homogenous costs, because they both directly contribute to the production of a product.<\/p>\n A heterogeneous cost pool is a cost pool in which the costs do not have a similar cause and effect relationship with the cost driver. For example, the costs of marketing and distribution would be considered to be heterogeneous costs, because they do not directly contribute to the production of a product.<\/p>\n In the question, the cost pool category is described as having a similar cause and effect relationship, with each cost driver used as an allocation base. This description indicates that the cost pool is a homogenous cost pool.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”heterogeneous price pool” option2=”homogenous cost pool” option3=”heterogeneous cost pool” option4=”homogenous price pool” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-59434","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n