If a Department Identifies More Than One Cost Driver for Overhead

question 36

Multiple Choice

If a department identifies more than one cost driver for overhead costs,the department ideally should ________.

• A)put 80 percent of the cost into one pool and 20 percent into a second pool
• B)select a single cost driver
• C)allocate 80 percent of the costs with 20% of the cost drivers
• D)create as many cost pools as there are cost drivers