Matching
Match the following definitions with the appropriate terms
Premises:
A measure of activity level.
Actions which cause resources to be used.
A collection of costs that are related to the same or similar activity.
An outgrowth of ABC that draws on the link between activities and cost incurrence for better management.
The target of a cost assignment.
Actions performed only on groups of units.
Variable that causes an activity’s cost to go up or down.
An allocation rate used to assign a collection of related costs to a cost object.
A cost allocation method that focuses on activities performed.
Variable that causes a cost to go up or down.
Responses:
Cost object
Activity
Cost driver
Activity-based costing
Batch level activities
Activity-based management
Pool rate
Activity cost driver
Activity driver
Cost pool
Correct Answer:
Premises:
Responses:
A measure of activity level.
Actions which cause resources to be used.
A collection of costs that are related to the same or similar activity.
An outgrowth of ABC that draws on the link between activities and cost incurrence for better management.
The target of a cost assignment.
Actions performed only on groups of units.
Variable that causes an activity’s cost to go up or down.
An allocation rate used to assign a collection of related costs to a cost object.
A cost allocation method that focuses on activities performed.
Variable that causes a cost to go up or down.
Premises:
A measure of activity level.
Actions which cause resources to be used.
A collection of costs that are related to the same or similar activity.
An outgrowth of ABC that draws on the link between activities and cost incurrence for better management.
The target of a cost assignment.
Actions performed only on groups of units.
Variable that causes an activity’s cost to go up or down.
An allocation rate used to assign a collection of related costs to a cost object.
A cost allocation method that focuses on activities performed.
Variable that causes a cost to go up or down.
Responses:
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