Question

Which of the following is a grouping of individual indirect cost items?

1) Cost tracing
2) Cost allocation
3) Cost pool
4) Cost-allocation base

Answer 1

The correct answer is 3) Cost pool. A cost pool is a grouping of individual indirect cost items that are similar or related to each other.

Step-by-step explanation:

The correct answer is 3) Cost pool. A cost pool is a grouping of individual indirect cost items that are similar or related to each other. It is a way to collect and accumulate costs from various sources, such as different departments or activities, to allocate them to specific cost objects.