Cost Pools

Cost pools are groupings of cost elements. You set up cost pools so that you can collect data about similar costs, and use the combined costs in calculations.

For example, you could use cost pools to collect data about the labor costs that are associated with a particular business process, including regular pay, overtime pay, bonuses, and so on. By collecting all of the labor costs that are associated with the business process, you can compare the labor costs to the revenues associated with the process and determine if the labor costs for the process are in line with the profits generated.