In the second-stage allocation in activity-based costing, costs that were not allocated in the first stage are assigned to the company's most profitable products.

Second-stage Allocation

In cost accounting, this is the process of allocating service department costs to producing departments based on relevant measures.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their use of activities, leading to more accurate product costing.

Profitable Products

Products that generate more revenue than the costs involved in their creation, marketing, and distribution.