We define second-stage allocation as ________.
A)the allocation of costs of activity cost pools to products
B)the allocation of revenues from earning earned to losses
C)the allocation of costs of losses to employee expenses
D)the allocation of costs to earnings in the current quarter
E)the allocation of costs to corporate profits

Question

Quizplus · Accepted Answer

Second-stage allocation refers to the process of assigning the costs of activity cost pools to individual products or services. This is typically done using a cost driver, such as machine hours or labor hours, to determine how much of the cost pool each product or service should be allocated. This helps organizations to better understand the true cost of production for each item they produce, and to make more informed decisions about pricing and profitability.

We Define Second-Stage Allocation as ________