The basic difference between a first-stage cost allocation

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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.

a. Only A is false
b. Only B is false
c. Both A and B are false

 

Reference no: EM13599347

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