The Basic Difference Between a First-Stage Cost Allocation and a Second-Stage

Multiple Choice

The basic difference between a first-stage cost allocation and a second-stage cost allocation is that:

A) 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.
C) the first stage prohibits firms from aligning the allocation of costs with the use of resources.
D) when used in an ABC system, the first stage assigns costs to activities.