Final answer:
Each indirect-cost pool in a manufacturing firm uses a separate cost-allocation rate, is part of the overall indirect costs, and is related to a specific cost object. Understanding various cost measures like fixed, variable, and marginal costs is essential for a firm's economic decision-making.
Step-by-step explanation:
The question pertains to indirect-cost pools within a manufacturing firm. To answer clearly, each indirect-cost pool: A) utilizes a separate cost-allocation rate, B) is a subset of total indirect costs, and C) relates to one cost object; therefore, D) all of these answers are correct. Indirect-cost pools offer a way to group and allocate costs that are not directly traceable to a single product or service, making them essential for accurate cost accounting and financial analysis within a firm.
In cost accounting, it's beneficial to break down total costs into different measures such as fixed cost, marginal cost, average total cost, and average variable cost because these provide valuable insights for a firm's decision-making. Fixed costs, for example, are sunk costs and don't influence future economic decisions. In contrast, variable costs usually have diminishing marginal returns, implying that the marginal cost of producing additional units typically increases.
The principles concerning average cost, average variable cost, and marginal cost, while numerically specific to each firm, have general patterns and economic intuitions that apply broadly in a short-run cost perspective.