activity cost pools
In managerial accounting activity cost pool is an aggregate of all required costs to perform tasks. Activity cost pool is a set of costs which are acquired when certain operations are performed within the organization.It is a good compromise between efficiency and accuracy. Assigning costs accurately in activity cost pool is important to determine the profitability of products and to make rational production decisions.
Activity Based Costing Example / Problem / Format Learning Objectives: Perform the first stage allocation of overhead costs to the activity cost pools. Compute activity rates for the activity cost pools. Construct a table showing the overhead costs of units and four orders. Ferris
First Stage Allocation Definition: The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.