1. Which of the following best describes the two-stage allocation process?

Select one:

a. Costs are first allocated to producing departments, then costs are allocated to products.

b. Costs are first allocated to support departments, then costs are allocated to products.

c. Costs are first allocated to producing departments, then costs are traced to support departments.

d. Costs are first allocated to products, then costs are allocated to services.

e. Costs are first traced to support departments, then costs are allocated to units.

2. The direct allocation method:

Select one:

a. is conceptually the most precise method.

b. results in allocating only the support costs used by operating departments.

c. partially recognizes the services provided among support departments.

d. is also referred to as the sequential method.

3. Which of the following departments would be classified as a support department?

Select one:

a. Assembly

b. Grinding

c. Engineering

d. Fabricating

e. Finishing