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Which of the following statements is/are true regarding the Activity Based Costing (ABC) two-stage approach to allocate departmental costs ? Select ALL that apply.
Two-stage ABC is also called the two-stage allocation approach.
Costs are allocated to cost activity cost pools in stage 1.
Activity costs stored in activity cost pools are allocated to products or services in stage 2.
All production overhead is allocated in the second stage while the first stage is for direct materials and direct labor.