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Why are two stages of allocation in activity-based costing?

Why are two stages of allocation in activity-based costing?

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Answer :- Activity Based costing ;-

It is one of the costing method which identifies the activities of an organization in oder to attribute the resources for products & services that are consumed in each activity in the process of prduction (or) during the process.

Activity based costing is an improved method for allocated overhead costs comparising of two stages.

Stage -1 In this stage of activity based costing emphasis is bid on determining the overhead cost incurred during each event of overhead during the process.

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