Homogeneous Cost Pool Leads to ________

question 56

Multiple Choice

Homogeneous cost pool leads to ________.

• A) more accurate costs of a given cost object
• B) more resources being assigned to that cost object
• C) the need for more cost drivers
• D) the need for different cost allocation bases to allocate the costs

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Definitions:

Book Value

The net value of a company's assets as found on its balance sheet, calculated by subtracting total liabilities from total assets.

Adjustment

Changes made to the financial records at the end of an accounting period to reflect true and fair values.

Unearned Fees

Income received by an entity for services yet to be provided and is recorded as a liability until the service is rendered.

Net Income

The net income a company earns following the subtraction of all taxes and expenses from its revenues.