What is the difference between allocation and apportionment as it applies to state and local taxation?

Allocation refers to accounting procedures to assign income to different state and local taxing jurisdictions, and apportionment refers to setting millage rates for real estate taxes.

None of the answers are correct.

Allocation is an arbitrary process of assigning costs to products and services, whereas apportionment is a cost driver approach used in activity$-$based$-$costing $($ABC$)$ to identify true costs.

Allocation is used to identify nonbusiness income from assets held exclusively for investment purposes for a specific state and local tax jurisdiction, whereas apportionment uses a formula to calculate income generated by conducting operations within that jurisdiction.