Busy. Please wait.

show password
Forgot Password?

Don't have an account?  Sign up 

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Don't know
remaining cards
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
restart all cards
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

C213 chapt 10

Activity Based Costing (ABC)

activity based costs (ABC) a method for more accurately assigning overhead costs to the products that create them
ABC step 1 Identify overhead cost activities
ABC step 2 Analyze individual overhead costs in terms of those cost activities
ABC step 3 Identify measurable cost drivers
ABC step 4 Assign overhead
ABC step 5 Use the ABC data to make decisions
Traditional product costing systems (e.g. job order costing and process costing) usually assume that Products consume overhead costs
The allocation of which of the following can cause the greatest errors when computing product costs manufacturing overhead
The four general categories of ABC activities are •Unit•Batch•Product line•Facility support
unit level activities those overhead activities that are performed each time a unit is produced
types of unit level activities •Machine maintenance •Machine depreciation •Electricity and other energy costs
overhead activities that are performed each time a new production batch is started or ended batch level activities
•Inspections •Machine setups •Movement of and accounting for materials types of batch level activities
overhead activities that are associated with the capability to produce different types of products product level activities
•Engineering product design •Storage in special warehouses •Managing by a special supervisor of all activities associated with a particular product line •Ordering, purchasing, and receiving materials unique to a particular product line types of product line activities
overhead activities that must be in place before any of the other production activities can take place facility support activities
•Property taxes •Factory insurance •Security •Landscaping •General accounting •General factory administration types of facility support activities
each of the overhead cost activity columns cost pool
Tracing overhead costs to activities involves dividing overhead costs into cost pools
used to track how costs of activities are related to specific cost objects such as products or divisions cost drivers
Created by: nashanta