alleryStart learning →A cost pool is described as a list of costs incurred when related activities are:
APerformed
BCancelled
CForgotten
DPostponed
Answer & Solution
Correct answer: A. Performed
1. Costs are gathered before they are spread.
2. A cost pool is a list of costs incurred when related activities are performed.
3. The pool exists because the work happened, not because it was dropped.
4. So the answer is performed.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 6 'Activity-Based, Variable, and Absorption Costing', sections 6.1-6.5_
Keep practising Activity-Based Costing
Browse all Activity-Based Costing questions for US CMA Part 1, or explore more Management Accounting topics.
Related questions
Work the per-unit numbersAbsorption or variableTraditional versus ABCSort costs by their levelOrder the five ABC stagesMoving to activity-based costing tends to change the per-unit cost of low-volume products One stated disadvantage of activity-based costing is that the method is:When the entire finished goods inventory is sold, net income under the two methods is: