Asked by MaoMony Udong on May 31, 2024
Verified
An activity cost pool in activity-based costing is a "cost bucket" in which costs related to a particular activity measure are accumulated.
Activity Cost Pool
A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.
Activity Measure
An activity measure is a metric used in activity-based costing to gauge the amount of activity consumed by a cost object, assisting in the more accurate allotment of overhead costs.
- Acquire knowledge about the activity measure concept and its impact on overhead cost allocation in the context of activity-based costing.
Verified Answer
HB
Hallie BrownJun 04, 2024
Final Answer :
True
Explanation :
An activity cost pool is a grouping of individual costs associated with a particular activity, such as setup costs or material handling costs. These costs are accumulated and then allocated to products or services based on the activity's usage.
Learning Objectives
- Acquire knowledge about the activity measure concept and its impact on overhead cost allocation in the context of activity-based costing.
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