Cost allocation is the process of assigning indirect costs to a cost object. The indirect costs are grouped in cost pools and then allocated by a common allocation base to the cost object. The base that is employed to allocate a homogeneous cost pool should:

A$.$ Assign the costs in the pool uniformly to cost objects even if the cost objects use resources in a nonuniform way.

B$.$ Have a cause$-$and$-$effect relationship with the cost items in the cost pool.

C$.$ Be a nonfinancial measure $($e$.$g$.,$ number of setups$)$ because a nonfinancial measure is more objective.

D$.$ None of these answer choices is correct.

E$.$ Have a high correlation with the cost items in the cost pool as the sole criterion for selection.