Stage 2 allocation definition
/What is a Stage 2 Allocation?
A stage 2 allocation involves the distribution of the costs of activities to cost objects. The costs of activities are calculated in the first stage of allocations. The stage 2 allocation concept is used in activity-based costing, and is designed to improve the accuracy of overhead allocations.
Examples of Cost Objects
Examples of cost objects are products, product lines, customers, and sales regions.