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

Multiple Choice

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