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100
Follows a two-stage procedure to assign overhead costs to products
What is Activity-based costing (ABC) systems
100
Degree of Correlation, Cost of Measurement, and Behavioral effects are important in selecting appropriate
What is Cost Drivers
100
A way of picturing the relationship between ABC and ABM is in terms of
What is two-dimensional ABC model
100
Goods are produced in each manufacturing stage only as they are needed at the next stage
What is Pull Method
100
The use of activity-based costing information to improve operations and eliminate non-value-added costs
What is Activity Based Management (ABM)
200
Overhead costs assigned to each activity
What is Activity cost pool
200
A procedure used to develop a detailed process flowchart, which visually represents activities and the relationships among the activities
What is Storyboarding
200
The detailed identification and description of the activities conducted in the enterprise
What is activity analysis
200
Total Budgeted overhead divided by Total Budgeted Direct-Labor Hours
What is the equation for a computation based on a single predetermined overhead rate based on direct-labor hours.
200
Stage 1: Overhead Costs are assigned to activity cost pools Stage 2: Overhead Costs are assigned to products
What are the two stage procedures that assign overhead costs to products that Activity-Based Costing systems follows?
300
The classification of activities into Unit level, Batch level, Product-sustaining level, and Facility level
What is cost hierarchy
300
A complete listing of the activities identified and used in the ABC analysis
What is Activity dictionary
300
Operations that are either unnecessary and dispensable or necessary, but inefficient and improvable
What is Non-value-added activities
300
Costs incurred for each batch of products
What is Batch-Level Costs
300
Activity Cost Pool divided by Cost Driver Quantity
What is the equation for Pool Rate
400
The proportion of an activity consumed by a particular project
What is the Consumption Ratio
400
Another commonly used element in an ABC analysis, with a complete listing of the activities required for the product or service to be produced.
What is a Bill of activities
400
The costs of activities that can be eliminated without deterioration of product quality, performance, or perceived value.
What is Non-value-added costs
400
A graph that is a common and useful way of presenting a customer-profitability analysis to management
What is a customer- profitability profile
400
A large proportion of non-unit-level activities and Product Diversity
When is a volume-based product-costing system likely to distort product costs
500
A characteristic of an event or activity that results in the incurrence of costs
What is a Cost Driver
500
Using activity-based costing (ABC) information to support organizational strategy, improve operations, and manage costs is called
What is activity-based management (ABM)
500
A comprehensive inventory and manufacturing control system in which no materials are purchased and no products are manufactured until they are needed
What is Just-in-time inventory and production management system (JIT)
500
Only a few suppliers, Long-term contracts negotiated with suppliers, Materials and parts delivered in small lot sizes immediately before they are needed, Only minimal inspection of delivered materials and parts, and Grouped payments to each vendor are
What is five key features of JIT purchasing
500
A Smooth Uniform Production Rate, A Pull Method of Coordinating Steps in the Production Process, Purchase of Materials and Manufacture of Subassemblies and products in small lot sizes, Quick and inexpensive setups of production machinery, and High Quality levels for raw material and finished products.
How does a JIT system achieve its vast reductions in inventory and associated cost savings?
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