Matching
Match each of the following terms a through j with the appropriate definitions 1 through 10.
Premises:
Activities performed to sustain facility capacity as a whole.
An outgrowth of ABC that uses the link between activities and costs.
A cost allocation method that focuses on activities performed.
Actions which cause costs to be incurred.
The target of a cost assignment.
An allocation rate used to assign overhead costs to cost objects.
Activities performed only on groups of units.
Actions which add value to a product.
Factor that drives cost.
A collection of costs that are related to the same or similar activity.
Responses:
Pool rate
Activity cost driver
Value-added activities
Cost pool
Facility-level activities
Cost object
Activity-based costing
Batch level activities
Activity
Activity-based management
Correct Answer:
Premises:
Responses:
Activities performed to sustain facility capacity as a whole.
An outgrowth of ABC that uses the link between activities and costs.
A cost allocation method that focuses on activities performed.
Actions which cause costs to be incurred.
The target of a cost assignment.
An allocation rate used to assign overhead costs to cost objects.
Activities performed only on groups of units.
Actions which add value to a product.
Factor that drives cost.
A collection of costs that are related to the same or similar activity.
Premises:
Activities performed to sustain facility capacity as a whole.
An outgrowth of ABC that uses the link between activities and costs.
A cost allocation method that focuses on activities performed.
Actions which cause costs to be incurred.
The target of a cost assignment.
An allocation rate used to assign overhead costs to cost objects.
Activities performed only on groups of units.
Actions which add value to a product.
Factor that drives cost.
A collection of costs that are related to the same or similar activity.
Responses:
Related Questions
Q5: What are the main advantages of volume-based
Q6: A company produces garden benches that go
Q7: Overhead costs:<br>A)Are directly related to production.<br>B)Can be
Q8: Batch-level costs do not vary with the
Q9: Identify and explain the four control levels
Q11: Allocated overhead costs vary depending upon the
Q12: Explain cost flows for activity-based costing.
Q13: Assume that Angle Max Industries allocates overhead
Q14: By definition,costs classified as overhead are consumed
Q15: Tarnish Industries produces miniature models of farm