Final answer:
The statement is true, as cost pools can indeed have multiple cost allocation bases, which allow for a more accurate allocation of costs to products or services based on relevant measures such as machine hours or labor hours.
Step-by-step explanation:
The statement that each cost pool may have multiple cost allocation bases is true. In managerial accounting, a cost pool is a collection of all the costs that are associated with a particular activity or department within a company. These costs are then allocated to different products or services using one or more cost allocation bases. A cost allocation base is a measure, such as machine hours, labor hours, or square footage, that is used as a means to distribute costs in the cost pool to the products or services.
For instance, a manufacturing company may use machine hours to allocate machinery-related expenses and labor hours to allocate labor expenses to products. Both of these allocation bases can be related to the same cost pool of manufacturing overhead. By having multiple cost allocation bases, companies can achieve a more accurate and equitable distribution of costs.