Answer and explanation:
An activity cost pool is the total sum of the activities necessary to carry out a task within an organization. In terms of costs, the Activity-Based Costing method (ABC) is used. Typical applications for that approach is when a factory wants to determine costs for machine set-up. Factors to be considered may imply but are not limited to production, purchasing material, inspect products, assemble products, and technological production.
In the example:
Production
Purchasing material
Inspect products
