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valkas [14]
3 years ago
6

EA12.

Business
1 answer:
Vsevolod [243]3 years ago
7 0

Answer and explanation:

An activity cost pool is the total sum of the activities necessary to carry out a task within an organization. In terms of costs, the Activity-Based Costing method (<em>ABC</em>) is used. Typical applications for that approach is when a factory wants to determine costs for machine set-up. Factors to be considered may imply but are not limited to production, purchasing material, inspect products, assemble products, and technological production.

In the example:

<u>Production</u>

  • <em>Machine setup (indirect labor)</em>
  • <em>Machine setup (indirect material)</em>
  • <em>Factory insurance</em>

<u>Purchasing material</u>

  • <em>Indirect materials</em>
  • <em>Machine depreciation</em>

<u>Inspect products</u>

  • <em>Inspections</em>
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