Abc assumes all costs in a cost pool can be grouped together because they all impact the activity.
A cost pool is a group of accounts used to describe the cost of goods and services that can be allocated within a manufacturing or business organization.
The pool's basic idea is to link direct and indirect costs to a given cost driver in order to calculate the entire cost of expenses associated with a product's manufacturing.
The majority of businesses opt to create numerically based sequences that can subsequently be allocated to the appropriate project, however, the precise building cost pools vary.
A single cost pool will often contain up to 10 digits in the sequence, with specific sets of those numbers being utilized to refer back to the project or another object.
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