Which of the Following Statements Is false regarding the Use

question 27

Multiple Choice

Which of the following statements is false regarding the use of multiple cost pools?

• A) Using more pools generally results in better cost allocations.
• B) Designing and maintaining a system with multiple pools can be complex and costly.
• C) The use of Activity-Based-Accounting will almost always require multiple cost pools.
• D) All support service costs are generally allocated using a single cost pool.

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Definitions:

Interest Revenue

Income earned from lending money or through investing in interest-bearing assets.

Operating Income

Income generated from a company's regular business activities, excluding deductions of interest and taxes.

Operating Revenue

Income earned from a company's core business operations, excluding revenue from other sources.

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in rendering services.