When Individual Activities Within a Cost Pool Have a Similar

Multiple Choice

When individual activities within a cost pool have a similar relationship with the cost driver, which of the following could be said about the cost pool?

A) the costs accumulated in the cost pool are not used for customer-profitability analysis
B) there is a need for need multiple cost drivers to allocate costs from the pool to customers
C) the cost pool is considered a homogeneous cost pool
D) the cost pool is considered contains only direct variable costs