Roberts Ltd allocates overhead to cost objects using a two-stage process. From this information, we can infer that Roberts Ltd:
A) Uses a traditional costing system
B) Uses an activity-based costing system
C) Has more than one product
D) May be using either a traditional or an activity-based costing system

Question

Quizplus · Accepted Answer

The two-stage process of allocating overheads, where costs are first pooled and then allocated to cost objects, can be a feature of both traditional costing systems and activity-based costing systems. The key difference between the two systems lies in how the overheads are allocated in the second stage, not in the use of a two-stage process itself.

Roberts Ltd Allocates Overhead to Cost Objects Using a Two-Stage