In two-stage activity-based costing systems,the cost objects in the first stage are ________ and the cost objects in the second stage are ________.
A) departments; products or services
B) departments; territories
C) resources; departments
D) activities; products or services

Question

Quizplus · Accepted Answer

In two-stage activity-based costing systems, the first stage involves identifying and assigning costs to activities (such as setup costs, inspection costs, or material handling costs). The cost objects in this stage are activities. In the second stage, the costs of the activities that were performed for each product or service are allocated to the respective products or services. Therefore, the cost objects in the second stage are products or services.

In Two-Stage Activity-Based Costing Systems,the Cost Objects in the First