Which of the Following Statements About Costing Systems Is True

question 54

Multiple Choice

Which of the following statements about costing systems is true?

• A) Both traditional and activity-based costing systems use a two-stage allocation process
• B) Traditional costing systems use a two-stage allocation process, but ABC systems require three stages
• C) ABC systems typically use a two-stage allocation process, whereas traditional systems use a single stage
• D) Both traditional and activity-based costing systems use a three-stage allocation process

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