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Activity-based costing (ABC) is a costing technique that uses a 2-stage allocation process. Which of the following statements best describes these 2 stages? a. All costs are assigned to activities and then to the products, based on the products’ use of the activities. b. All costs are assigned to departments and then to the products, based upon the products’ use of the activities. c. Service department costs are allocated to the production departments and then to the products, based upon the products’ use of the activities. d. Indirect costs are assigned to activities and then to the products, based upon the products’ use of the activities.

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