In the two-stage cost allocation process, costs are assigned from:
A)jobs, to service departments, to production departments.
B)service departments, to jobs, to production departments.
C)service departments, to production departments, to jobs.
D)production departments, to jobs, to service departments.
E)the balance sheet when goods are produced to the income statement when goods are sold.

Question

Quizplus · Accepted Answer

In the two-stage cost allocation process, the first stage involves assigning costs from service departments to production departments, while the second stage involves assigning costs from production departments to jobs. Therefore, option C is the correct answer as it correctly indicates the sequence of cost allocation.

In the Two-Stage Cost Allocation Process, Costs Are Assigned From