When the Cost Pools Are Homogeneous Which of the Following

question 127

Multiple Choice

When the cost pools are homogeneous which of the following will be true?

• A) the number of needed cost pools will be more
• B) the costs in the cost pool have a similar cause-and-effect or benefits-received relationship with the cost-allocation base
• C) managers should not allocate both variable costs and costs that are fixed in the short-run
• D) there will be a greater variety of cause-and-effect, benefits-received, or fair-and-equitable relationship with the cost-allocation base

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