Abc assumes all costs in a B. Cost Pool can be grouped together because they all impact the activity.
The cost pool is the amount of money spent on the "activity". B. Customer Service or Manufacturing. Cost blocks are used in Activity-Based Costing to determine exactly where costs are being spent, rather than splitting overhead costs evenly across all departments.
A cost driver is any activity that costs money to make a product. Cost blocks are cost drivers and fall into groups of related costs
The question is incomplete. Please read below to find the missing content.
ABC assumes all costs in a ________ can be grouped together because they all impact the activity.
A. Department
B. Cost pool
C. Time period
D. Product line
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