The basic difference between a first-stage cost allocation and a second-stage cost allocation is that:

Select one:

a. when used in an ABC system, the first stage assigns costs to activities.

b. none of the given answer.

c. the first stage prohibits firms from aligning the allocation of costs with the use of resources.

d. cost pools are not used in first-stage cost allocations.

e. predetermined overhead rates are used in first-stage cost allocations but not in second-stage cost allocations.

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Which of the following would not be a batch-related activity?

Select one:

a. Setting up a machine for a new production run.

b. None of the given answer.

c. Purchasing materials.

d. Processing a customer order.

e. Shipping costs.