An activity cost pool in activity-based costing groups indirect costs according to activities to allocate costs effectively.
In management accounting, an allocation base is used to distribute costs to cost objects. A crucial component of both traditional costing systems and Activity-Based Costing (ABC), the allocation base plays a significant role in accurate cost allocation.
Equitable apportionment refers to the process of sharing common costs between different cost centres in a fair and just manner. This is done using a basis of apportionment that accurately reflects how the costs are incurred by each cost centre.
In cost accounting, unit-level activities are those that are performed each time a unit is produced. These include tasks directly correlated with the production volume, such as machine operation and direct labor.
