Activity-based costing (abc) is a costing technique that uses a two-stage allocation process. which of the following statements best describes these two stages?
a. the costs are assigned to activities, and then to the products based upon their use of the activities.
b. the costs are assigned to departments, and then to the products based upon their use of activity resources.
c. direct costs are allocated to the production departments based on a predetermined overhead rate.
d. indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?