managerial accounting smartbook ch 4

A cost bucket in which costs related to a particular activity measure are accumulated is called a(n) ______.

activity cost pool

A predetermined overhead rate in an activity-based costing system is called a(n)

activity rate

When a company has extensive product diversity and complex overhead, it is best to assign overhead using ______.

activity-based costing

An activity measure in activity-based costing is used as a(n) ________ base for applying overhead costs to products and services.

allocation

A predetermined overhead rate in an activity-based costing system is called

an activity rate

In activity-based costing an activity measure is ______.

an allocation base

When two variables move together, they are said to be negatively correlated. True or false

false

Activity-based costing ______.

computes product costs in the same way as traditional costing

Organization-sustaining activities is another term for _________ level activities

facility

An activity that must be done for each item produced is a(n) __ level activity.

unit

An activity that must be done for each item produced is a(n) ________ activity

unit level

The activity rate is computed by dividing the ______ by the ______.

total cost in the activity cost pool; activity level in the activity cost pool

________ activities relate to specific products and typically must be carried out regardless of how many batches or units of the product are manufactured.

product level