What is the reason for pooling costs? correct Determining a pool rate for all costs incurred by the same activity reduces the number of cost assignments required. To shift costs from low-volume to high-volume products. It is a budgeting technique designed to accurately track fixed costs. It simplifies departmental overhead costing procedures. This procedure helps to determine which costs are directly related to production volume.

What is the reason for pooling costs?

•      Determining a pool rate for all costs incurred by the same activity reduces the number of cost assignments required.
•     To shift costs from low-volume to high-volume products.
•     It is a budgeting technique designed to accurately track fixed costs.
•     It simplifies departmental overhead costing procedures.
•     This procedure helps to determine which costs are directly related to production volume.

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