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.


Answer: B

Business

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