Which of the Following Is False Concerning Homogeneous Cost Pools

question 32

Multiple Choice

Which of the following is False concerning homogeneous cost pools?

• A) They enable more accurate product, service and customer costs to be obtained.
• B) The cost allocations using the pool will be the same as would be made if each individual activity in the pool were allocated separately.
• C) The greater the degree of homogeneity, the fewer cost pools are required to accurately explain differences in how products use resources.
• D) All activities in the pool have the same or similar cause-and-effect relationship between the cost allocator and the costs of the activity.
• E) All activities in the pool have a unique and different benefits-received relationship between the cost allocator and the costs of the activity.

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