All Costs in a Homogeneous Cost Pool Have

question 159

Multiple Choice

All costs in a homogeneous cost pool have

• A)only one cost driver that will accurately represent the relationship between the costs and the activity.
• B)to be adjusted at year end to actual costs.
• C)the same cost behaviour.
• D)the same or a similar cause-and-effect (or benefits-received)relationship with a single cost driver that is used as the cost-allocation base.
• E)a causal relationship with manufacturing costs.