Question

True or false: indirect costs should not be pooled unless they share a common cost driver

Answer 1

I do believe this statement to be true

Answer 2

True

Step-by-step explanation:

Indirect costs are costs that are not directly related to the production of the products, and they shouldn´t be pooled unless they share a cost driver because that is how it is usually done, a cost driver is the cost of an activity, like hours of labor, number of hours of machines used, or cost of repairing those machines, is not a cost that is directly involved in the production, but touches or is related to the production.