Which of the following is not a true statement regarding the pooling of indirect costs?

A. Pooled costs may require disaggregation when allocating costs for different purposes.
B. A single cost pool will have more than one cost driver for different cost objects.
C. Pooling costs that have different cost drivers may result in unreliable cost allocation.
D. Costs that have been pooled for one purpose may require disaggregation for a different purpose.


Answer: B

Business

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For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which statement describes a characteristic of a well-designed plan?

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What will be an ideal response?

Business