When allocating support department costs, managers must identify cost pools. The choice of cost pools is: Question 2 options: not influenced by the allocation base. not important, because all support department costs will eventually be allocated anyway. influenced by the design of the accounting information system. determined by whether a company uses IFRS or ASPE.

Cost pools represents the various cost incurred in the production process of the company that have…

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Business

Accounting

When allocating support department costs, managers must identify cost pools. The choice of cost pools is:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5MC: Which of the following is a reason a company would implement activity-based costing? A. The cost of...

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Question

When allocating support department costs, managers must identify cost pools. The choice of cost pools is:

Question 2 options:

	not influenced by the allocation base.
	not important, because all support department costs will eventually be allocated anyway.
	influenced by the design of the accounting information system.
	determined by whether a company uses IFRS or ASPE.

Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.

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