Example of cost pools and cost drivers

 · Upon completion of your project, you'll be able to tell OJW Company that they will need three activity cost pools for the following cost drivers: direct .  · Examples of cost drivers are as follows: Direct labor hours worked. Number of customer contacts. Number of engineering change orders issued. Number of machine hours used. Hereof, what is a cost pool examples? A cost pool is a grouping of individual costs, typically by department or service center. Cost allocations are then made from the cost pool. Examples of these cost drivers are given below: 1st: No. of Purchase Orders. When we have to make any product, we issue the order. This is a simple activity. Its cost can be calculated one the basis of no. of purchase orders. So, number of purchase order is an example of cost driver. 2nd: .

Secondly, what is an example of a cost driver? Examples of cost drivers are as follows: Direct labor hours worked. Number of customer contacts. Number of engineering change orders issued. Number of machine hours used. Regarding this, what is a cost pool examples? A cost pool is a grouping of individual costs, typically by department or service. A cost driver is the direct cause of a cost, and its effect is on the total cost incurred. For example, if you are to determine the amount of electricity consumed in a particular period, the number of units consumed determines the total bill for electricity. The cost manager can perform an analysis of these three different pools based on the cost drivers, and the total cost of $50, can be divided between the three pools. Hence, this method of assigning costs is more precise and reliable than the estimation of expenses or splitting the total cost equally.

New survey shows more Americans are open to having telematics devices in their cars, if it means a discount on their auto insurance rates. More Americans want auto insurance pricing to be based on how they drive vs. what they drive and othe. Types of Pools - Swimming pool types include above-ground pools, fiberglass pools, vinyl-lined, gunite and poured-concrete pools. Learn the pros and cons of each type of pool. Advertisement By: Tom Harris The main difference between differe. Here's what it takes to add a swimming pool to your yard, from design and layout to construction and finishing touches. Watch this video to find out more. Video Playback Not Supported Adding a swimming pool to your backyard is a big project.