The basic difference between the department cost allocation method and activity-based costing (ABC)is the number of stages involved in allocating costs to products.It is not the number of stages,it is the use of activity cost pools and different cost drivers.

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The basic difference between department cost allocation and ABC is indeed the number of stages and the use of activity cost pools and different cost drivers. Department cost allocation typically involves fewer stages and uses departmental rates, while ABC involves multiple stages with activity cost pools and specific cost drivers for each activity.

The Basic Difference Between the Department Cost Allocation Method and Activity-Based