Activity-based costing uses direct labor as its primary cost driver. can be used only in a job order costing system. is the initial phase of converting to a just-in-time operating environment. is a two-stage overhead cost allocation system that identifies activity cost pools and cost drivers.

is a two-stage overhead cost allocation system that identifies activity cost pools and cost drivers.

Explanation:

Normally two stage allocation cost consists of certain steps. First, it is necessary to identify indirect costs that all the implied departments could carry even including the production department. Then, it would be necessary to calculate al the indirect and direct costs necessary to develop the final product including hours of work, machinery, and all the necessary elements implied for the final development.  

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