Activity Cost Pools: Definition & Examples

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question 1 of 3

What is an activity cost pool?

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1. What is the first step to creating activity cost pools?

2. What is the cost driver for fringe benefits?

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About This Quiz & Worksheet

What do you know about activity cost pools? Try this multiple-choice worksheet/quiz and answer questions on a few topics including a simple explanation of an activity cost pool and the initial step in creating one.

Quiz & Worksheet Goals

These points associated with activity cost pools will be explored:

  • Fringe benefits and their cost drivers
  • Expense that wouldn't be included in an activity cost pool with a cost driver of machine hours
  • Manufacturing overhead

Skills Practiced

  • Defining key concepts - make sure you can accurately define an activity cost pool
  • Information recall - access the knowledge you've gained regarding the first step in creating an activity cost pool
  • Interpreting information - verify that you can read information about manufacturing overhead and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about the expenses that are included in an activity cost pool with machine hours as the cost driver and the cost driver for fringe benefits

Additional Learning

Take some time to learn more about cost drivers in the video lesson entitled Activity Cost Pools: Definition & Examples. Here are some of the topics you'll be going over in greater detail:

  • Purpose of activity-based costing systems
  • Indirect costs
  • Activity cost pools of a manufacturing company
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