Final answer:
The correct statement about indirect cost pools is that each utilizes a separate cost-allocation rate, allowing for accurate distribution of costs to products or services.
Step-by-step explanation:
Among the options provided regarding the use of indirect cost pools by a manufacturer, the correct statement is d) Each indirect cost pool utilizes a separate cost-allocation rate.
Indirect cost pools are used to accumulate costs that are not directly traceable to a single product or job.
Each of these pools may have different types of costs and, as a result, each one typically utilizes its own cost-allocation rate to distribute costs to the various products or services the manufacturer offers.
Understanding the breakdown of total costs into fixed cost, marginal cost, average total cost, and average variable cost is useful for a firm to gain insights.
These measures provide a nuanced view of the cost structures and help in decision-making processes for pricing, production, and financial planning.
The correct statement about indirect cost pools is that each utilizes a separate cost-allocation rate, allowing for accurate distribution of costs to products or services.