Question 1
Homogeneous cost pool leads to which of the following?
◦ more accurate costs of a given cost object
◦ more resources being assigned to that cost object
◦ the need for more cost drivers
◦ the need for different cost allocation bases to allocate the costs
Question 2
In cost allocation, R&D costs are used to ________.
◦ provide information for economic decisions
◦ report to external parties when using generally accepted accounting principles
◦ calculate costs of a government contract
◦ calculate prime cost of a product