A Cost Pool Is a Grouping of Individual Direct Cost

question 41

True/False

A cost pool is a grouping of individual direct cost items.

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Definitions:

Direct Labor-hours

The total hours worked by employees directly involved in manufacturing a product, often used as a basis for allocating labor costs to products.

Raw Material

Basic substances in their natural, modified, or semi-processed states used as inputs for production processes to manufacture finished goods.

Materials Price Variance

The deviation between the actual and standard cost of materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at the standard cost.