The purpose of Stage 1 allocations is to:
A)assign indirect manufacturing costs to activity cost pools.
B)assign the indirect costs of each activity to products and services.
C)assign direct manufacturing costs to activity cost pools.
D)assign the direct costs of each activity to products and services.

Question

Quizplus · Accepted Answer

Stage 1 allocations in activity-based costing involve assigning indirect manufacturing costs to activity cost pools, not direct costs or assigning costs directly to products and services.

The Purpose of Stage 1 Allocations Is To