Chapter 5-Study Information

Chapter 5-Study Information - example of each of the four...

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Accounting 230 Chapter 5—Study Information Horngren 13 th Ed. 1. You should be able to explain product undercosting and overcosting and how it occurs from using traditional accounting approaches of assigning costs to cost objects. 2. You should be able to define cost smoothing (peanut-butter costing) and product-cost cross-subsidization. 3. You should be able to define activity-based costing and the term “activity.” 4. You should be able to define “cost hierarchy” and be able to list, define, and give an
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Unformatted text preview: example of each of the four common levels in an ABC system. 5. You should be able to compute the product cost and selling price of products/services using traditional and ABC approaches. 6. You should be able to list and discuss the 4 uses of activity-based costing information for management decisions (ABM) on pages 152-155. 7. You should be able to list and describe some of the telltale signs of companies that could benefit from ABC....
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