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