Select all that applyWhich of the following are true of activity-based costing? Multiple select question.With activity-based costing, each activity has an associated cost pool.In the ABC two-stage cost system, the first stage consists of activities.In the ABC two-stage cost system, the first stage consists of departments.With activity-based costing, there is a single cost pool represe

The correct answers are:

1. With activity-based costing, each activity has an associated cost pool.
2. In the ABC two-stage cost system, the first stage consists of activities.

Explanation:

Activity-based costing (ABC) is a method of assigning overhead and indirect costs—such as salaries and utilities—to products and services. The ABC system of cost accounting is based on activities, which is any event, unit of work, or task with a specific goal.

In the ABC system, each activity has an associated cost pool. This means that all costs associated with a specific activity are grouped together in a 'pool'. This cost pool is then used to allocate costs to products or services based on the amount of that activity they require.

The ABC system is a two-stage cost system. The first stage consists of activities. This is where costs are assigned to activities. The second stage is where these costs are allocated to the products or services that use these activities.

The statement "In the ABC two-stage cost system, the first stage consists of departments" is incorrect. In the ABC system, the first stage consists of activities, not departments.

The statement "With activity-based costing, there is a single cost pool" is also incorrect. In the ABC system, each activity has its own cost pool. There isn't a single cost pool representing all activities.