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

question 76

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 A and B are false.
• D) Neither A nor B is false.

---

Definitions:

Management Structure

The organizational framework defining the hierarchy of authority, roles, and responsibilities within a company.

Company's Mission

A statement that outlines the goals and values of a company, guiding its direction and decision-making processes.

Prospective Employer

An organization or individual that may potentially hire someone for a job position.

Potential Employer

An organization or individual considering hiring someone for a job position.