Cost Pool - What is a cost pool examples?

Q: What is a cost pool examples?

December 25, 2019. A cost pool is a grouping of individual costs, typically by department or service center. Cost allocations are then made from the cost pool. For example, the cost of the maintenance department is accumulated in a cost pool and then allocated to those departments using its services.

Answer

Saturday, December 25, 2019. The term "cost pool" refers to the practice of combining related expenses, usually by service center or department. After then, the cost pool is used to allocate costs. The maintenance department's expenses, for instance, are consolidated into a cost pool from which they are distributed to the departments that make use of them.

Cost Pool - What is a cost pool examples?

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