When Individual Activities Within a Cost Pool Have a Similar

question 44

Multiple Choice

When individual activities within a cost pool have a similar relationship with the cost driver,the cost pool ________.

• A) is not considered for customer-profitability analysis
• B) need multiple cost drivers
• C) is considered a homogeneous cost pool
• D) is considered an allocated cost pool

---

Definitions:

Verified

Confirmed as true, accurate, or to meet a particular standard.

Predatory Pricing

The strategy of setting prices at a very low level with the intent to eliminate competition, considered illegal in many jurisdictions.

Price Discrimination

The strategy of selling the same product to different customers at different prices based on their willingness to pay.

Resale Price Maintenance

A practice where a manufacturer and its distributors agree on the minimum price at which a product can be sold to consumers.