acct ch 6
Setting up equipment, placing purchase orders, and arranging shipments to customers are all examples of
batch-level activities
A systematic approach that can identify improvement opportunities is Blank______
benchmarking
Costs that cannot be traced on a cause-and-effect basis to individual products are ______-level costs.
facility
An activity that must be done for each item produced is a(n) __ level activity.
unit
A plantwide overhead rate based on direct labor hours is ______ appropriate.
sometimes
benchmarking
a process by which a company compares its performance with that of high-performing organizations
Designing and advertising a good are both ______-level activities
product
Activity rate
An overhead rate in activity-based costing. Each activity cost pool has its own activity rate which is used to assign overhead to products and services.
Activity cost pool
A "bucket" in which costs are accumulated that relate to a single activity measure in an activity-based costing system.
activity cost pool
A "bucket" in which costs are accumulated that relate to a single activity measure in the ABC system is a(n) ______.
product level
activities relate to specific products and typically must be carried out regardless of how many
Activity-based management is focused on ______
eliminating waste and reducing defects.
Batch
-level activities consist of tasks that are performed each time a batch of goods is handled or processed, regardless of how many units are in a batch.
unit level
An activity that must be done for each item produced is a(n)
activity measure
An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.
Activity-based management
a management approach that focuses on managing activities as a way of eliminating waste and reducing delays and defects
Activity-based costing
computes product costs in the same way as traditional costing
allocation
the action or process of allocating or distributing something.
Activity-based costing (ABC)
A two-stage costing method in which overhead costs are assigned to products on the basis of the activities they require.
batch level activities
Activities that are performed each time a batch of goods is handled or processed, regardless of how many units are in the batch. The amount of resource consumed depends on the number of batches run rather than on the number of units in the batch.
Unit-level activities
Activities that arise as a result of the total volume of goods and services that are produced, and that are performed each time a unit is produced.
product level activities
Activities that relate to specific products that must be carried out regardless of how many units are produced and sold or batches run.
facility-level activities
Organization-sustaining activities is another term for
A predetermined overhead rate in an activity-based costing system is called
an activity rate
activity
an event that causes the consumption of overhead resources