Matching
Match each of the following terms a through j with the appropriate definitions
Premises:
An allocation rate used to assign overhead costs to cost objects.
An outgrowth of ABC that uses the link between activities and costs.
The target of a cost assignment.
A collection of costs that are related to the same or similar activity.
Factor that drives cost.
Actions which add value to a product.
Activities performed only on groups of units.
Actions which cause costs to be incurred.
Activities performed to sustain facility capacity as a whole.
A cost allocation method that focuses on activities performed.
Responses:
Activity-based management
Activity-based costing
Activity
Batch level activities
Facility-level activities
Activity cost driver
Cost object
Cost pool
Pool rate
Value-added activities
Correct Answer:
Premises:
Responses:
An allocation rate used to assign overhead costs to cost objects.
An outgrowth of ABC that uses the link between activities and costs.
The target of a cost assignment.
A collection of costs that are related to the same or similar activity.
Factor that drives cost.
Actions which add value to a product.
Activities performed only on groups of units.
Actions which cause costs to be incurred.
Activities performed to sustain facility capacity as a whole.
A cost allocation method that focuses on activities performed.
Premises:
An allocation rate used to assign overhead costs to cost objects.
An outgrowth of ABC that uses the link between activities and costs.
The target of a cost assignment.
A collection of costs that are related to the same or similar activity.
Factor that drives cost.
Actions which add value to a product.
Activities performed only on groups of units.
Actions which cause costs to be incurred.
Activities performed to sustain facility capacity as a whole.
A cost allocation method that focuses on activities performed.
Responses:
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