In general,variable costs are allocated using a first-stage cost allocation system and fixed costs are allocated using a second-stage cost allocation system.

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Quizplus · Accepted Answer

This statement is not entirely accurate. Both variable and fixed costs can be allocated using either a first-stage or second-stage cost allocation system, depending on the specific circumstances and allocation methodology used by the organization. It is not strictly determined by whether the cost is variable or fixed.

In General,variable Costs Are Allocated Using a First-Stage Cost Allocation