Cost allocation and cost drivers. What is the relationship between the concept of the cost allocation basis, used in the step-down method, and the concept of the cost driver, used in activity-based...

Cost allocation and cost drivers. What is the relationship between the concept of the cost allocation basis, used in the step-down method, and the concept of the cost driver, used in activity-based costing (ABC)?

Fully allocated costs. What is the difference between a cost object’s direct cost and its fully allocated cost? Give an example.