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What is the activity cost pool divided by when trying to find the solution for the...

What is the activity cost pool divided by when trying to find the solution for the activity rate of an activity cost pool?

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Solution. An organization operating business needs to record activities to prepare financial statements and make decisions to run profitably. Activity Based Costing is one costing method used by an organization to arrive to cost of products or services. According to the given question, to arrive to the activity rate of an activity cost pool, the activity cost pool is divided by total cost drivers. This method encompasses indirect costs and overheads while assigning and controlling cost accounting of an organization.

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