Homogeneous cost pool

Homogeneous cost pool is cost pool in which all the costs have the same or a similar cause-and-effect or benefits-received relationship with the cost-allocation base.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Homogeneous cost pool. Cost pool in which all the costs have the same or a similar cause-and-effect or benefits-received relationship with the cost-allocation base.