Prior to allocating overheads to a product, it is necessary to allocate the costs of all support departments to the production departments.

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Quizplus · Accepted Answer

This is known as the two-stage allocation process, where the first stage involves allocating all the support department costs to the production departments and the second stage involves allocating the production department costs to the individual products.

Prior to Allocating Overheads to a Product, It Is Necessary