In the first-stage allocation in an ABC system, some costs may be allocated to a special cost pool that are not subsequently allocated to products or customers.

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Basma Abugrara · Accepted Answer

Final Answer : True, Explanation :  This is true. The first-stage allocation in an ABC system involves allocating costs to various cost pools based on their root causes. Sometimes, a special cost pool may be created to capture costs that cannot be directly allocated to products or customers in the second-stage allocation. These costs may include general overhead costs, such as rent, utilities, or executive salaries, that cannot be traced to specific products or customers.

In the first-stage allocation in an ABC system, some costs may be allocated to a special cost pool that are not subsequently allocated to products or customers.

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