Question

More cost pools: always result in better estimates of overhead costs. seldom result in better estimates...

More cost pools:

always result in better estimates of overhead costs.

seldom result in better estimates of overhead costs.

are usually beneficial if the pattern of demand varies across resources

result in lower estimates of total overhead costs
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Answer #1

Your required answer is option C i.e. Are usually beneficial if the pattern of demand varies across resources.

Explanations:

Cost pool is a group of individual cost in any organization (generally in manufacturing organization) and it is not possible to record/enter each and every cost in books therefore it is usually beneficial if the pattern of demand varies across resources.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

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