Which of the Following Statements Regarding the Two-Stage Cost Allocation

Multiple Choice

Which of the following statements regarding the two-stage cost allocation process is (are) false?
(A) If a company has three cost pools, then it should also have three different cost allocation bases.
(B) The selection of an appropriate cost allocation base is more important for single-stage cost allocation systems than for two-stage cost allocation systems.

A) Only A is false.
B) Only B is false.
C) Both of these are false.
D) Neither of these is false.