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All Costs in a Homogeneous Cost Pool Have

Question 159

Multiple Choice

All costs in a homogeneous cost pool have


A) only one cost driver that will accurately represent the relationship between the costs and the activity.
B) to be adjusted at year end to actual costs.
C) the same cost behaviour.
D) the same or a similar cause-and-effect (or benefits-received) relationship with a single cost driver that is used as the cost-allocation base.
E) a causal relationship with manufacturing costs.

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