Determine cost pool and cost drivers, Managerial Accounting

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Determine Cost pool and Cost drivers

Cost pool: it is another name given to a cost centre and, therefore an activity cost centre may also be termed as an activity cost pool.

Cost drivers: the causes for incurrence of overhead cost are known as cost driver. A cost driver is factor the change of which results in a consequential change in the total cost of a related object. If its lewd change it brings a comspanding change in the lewd of total cost of the related cost

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