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Angelica and class, a concern in forming a cost pool is that the costs within the cost pool be similar or homogeneous. It is unlikely

  • Angelica and class, a concern in forming a cost pool is that the costs within the cost pool be similar or homogeneous. It is unlikely that variable and fixed costs are similar (i.e., that one allocation base is suitable for allocating both fixed and variable costs). Homogeneous cost pools provide more accurate information. Why is it generally a good idea to allocate budgeted, rather than actual, service department costs?

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