Consider the following statements about the two-stage cost allocation process.i.Costs in various cost pools are distributed to all departments,including support and production departments
Ii)Support department costs are allocated to production departments.
Iii)Costs are assigned to each production department that has worked on the product.Which statement/s is/are correct?
A) i,ii and iii
B) i and iii
C) iii
D) ii

Question

Quizplus · Accepted Answer

The two-stage cost allocation process involves distributing costs to all departments, including support and production departments (i), allocating support department costs to production departments (ii), and assigning costs to production departments that have worked on the product (iii).

Consider the Following Statements About the Two-Stage Cost Allocation Process