If a Department Identifies More Than One Cost Driver for Overhead

question 118

Multiple Choice

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

• A) put 80 percent of the costs 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 percent of the cost drivers
• D) create as many cost pools as there are cost drivers