Information for the third measure was derived from a question that requested the respondents
to insert how many different types of overhead allocation bases were used in the second stage of the two-stage allocation process.16 Finally, the fourth measure compared the results with the dependent variable
being categorized by dichotomous variables represented by direct costing and absorption costing systems.
To ascertain whether absorption or direct costing systems were used respondents were asked to indicate
whether or not their costing systems assigned indirect costs to products or services.