Define:cost pool, cost tracing, cost allocation, and cost allocation base.

Define:cost pool, cost tracing, cost allocation, and cost allocation base.



Cost pool -- A grouping of individual indirect cost items.

Cost tracing -- The assigning of direct costs to the chosen cost object.

Cost allocation -- The assigning of indirect costs to the chosen cost object.

Cost allocation base -- A factor that links in a systematic way an indirect cost or group of
indirect costs to cost objects.


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