First-stage cost allocations


Which of the following statements is (are) false regarding first-stage and second-stage cost allocation methods?

(A) The basic difference between a first-stage cost allocation and a second-stage cost allocation is that cost pools are not used in first-stage cost allocations

(B) Predetermined overhead rates are used in first-stage cost allocations but not in second-stage cost allocations

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Accounting Basics: First-stage cost allocations
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