TRUE OR FALSE The general principle in determining the number of cost pools is that a separate cost pool should be used for the cost of an activity if the pattern of demand for it varies across products in proportions different from those reflected in existing cost pool drivers.

Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
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TRUE OR FALSE

The general principle in determining the number of cost pools is that a separate cost pool should be used for the cost of an activity if the pattern of demand for it varies across products in proportions different from those reflected in existing cost pool drivers.

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