Final answer:
An activity cost pool is a way of grouping and allocating costs based on similar activities or processes. Machining is not an example of an activity cost pool, while setting up machines, inspecting, and machine hours are all examples.
Step-by-step explanation:
An activity cost pool is a way of grouping and allocating costs based on similar activities or processes. The cost pool serves as a bucket for collecting costs that are incurred while performing these activities.
Out of the given options, Machining is not an example of an activity cost pool. Machining refers to the specific activity or process of shaping or modifying material using tools or machines. It is not a category or pool that groups similar activities for cost allocation.
On the other hand, Setting up machines, Inspecting, and Machine hours are all examples of activity cost pools. Setting up machines, inspecting products, and the hours spent operating machines are all activities that incur costs and can be grouped into cost pools for analysis and allocation.