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accounting 10

accounting chapter 10 WGU C213

TermDefinition
activity- based costing (ABC) method of attributing overhead costs to products based on measurable factors that relate to activates that create overhead costs
5 steps in implementing using ABC 1) identify overhead cost activies 2) analyze individual overhead costs in terns of those cost activates 3) identify measurable cost drivers 4) assign overhead 5) use ABC data to make decision
unit-level activities activates that take place each time a unit of products is produced
batch-level activites activates that take place in order to support a bath or production run, regardless of size of the batch
product-line activites activates that take place in order to support a product line, regardless of the number of batches or individual units produced
product line activities examples engineering product design storage in special warehouses supervisor of product line activities ordering, purchasing and receiving materials used to a particular product line
facility support activies examples activates necessary to have a facility in order to patriciate in the development and production of products/services. NOT related to product/service lines.
facility support activies examples property tax factory insurance security landscaping general accounting general factory admin
cost pool total cost being generated by specific overhead cost activity
cost drivers numerical measure used to reflect the amount of specific sot that associated with a particular activity
Created by: 1piper4me
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