Under an activity-based costing system

Under an activity-based costing system, Glaser will use preliminary stage cost drivers to link costs of resources consumed in one activity center to other activity centers. Some costs, such as batch-level activity center costs are initially assigned to a primary stage activity center and only need a single assignment process and are traceable to specific products but often use a cost driver. Product-level activity center costs may be related to a specific product or grouped by activity before being assigned to products at the primary stage. Facility-level activity center costs may go through multiple preliminary stages before assign to products. It is necessary to use a preliminary stage cost driver because this system assigns costs from activities to other activities.

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