When Individual Activities Within a Cost Pool Have a Similar

question 90

Multiple Choice

When individual activities within a cost pool have a similar relationship with the cost driver, which of the following could be said about the cost pool?

• A) the costs accumulated in the cost pool are not used for customer-profitability analysis
• B) there is a need for need multiple cost drivers to allocate costs from the pool to customers
• C) the cost pool is considered a homogeneous cost pool
• D) the cost pool is considered contains only direct variable costs

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Definitions:

Polygraph

A device, commonly referred to as a lie detector, that measures and records several physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while the subject is asked and answers a series of questions.

Mood

A temporary state of mind or feeling that can influence perception, behavior, and overall emotional state.

Facial Feedback

The hypothesis that facial movements can influence emotional experiences, suggesting that smiling can make one feel happier.

Facial Muscles

Muscular structures in the face responsible for expressions and movements, such as smiling or frowning, contributing to nonverbal communication.