Cost Ch 4 Notes - Blank

Cost Ch 4 Notes - Blank - Chapter 4 Notes Activity- Based...

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Unformatted text preview: Chapter 4 Notes Activity- Based Costing Systems Learning Objectives This chapter has eight learning objectives. 1. Describe how traditional costing could lead to undercosting or overcosting products. 2. Discuss the four ways used in activity-based costing system. 3. Identify the different level of resources and activities used in production processes. 4. Estimate the cost of activities and calculate a cost driver rate. 5. Assign activity costs to goods and services. 6. Analyze the profitability of products and customers. 7. Apply activity-based costing to service and merchandising. 8. Distinguish between activity-based costing, unit level costing, and ABC full costing of goods and services. Cost Accounting - Chapter 4 Notes Page 1 A. Activity-based costing (ABC) is a costing system ____ ______ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ 1. Production processes include ____________________ ____________________________________________ ____________________________________________ ____________________________________________ ____________________________________________ Cost Accounting - Chapter 4 Notes Page 2 2. Business processes are _________________________ ____________________________________________ ____________________________________________ ____________________________________________ 3. ABC is applicable to all types of organizations manufacturing, merchandising, and service organizations. B. Different processes in an organization use resources differently. 1. Processes use ________________________________ ____________________________________________ a. Physical resources include ____________________ __________________________________________ b. Human resources refer to __________________ __________________________________________ __________________________________________ c. An activity-based costing system _____________ Cost Accounting - Chapter 4 Notes Page 3 __________________________________________ __________________________________________ __________________________________________ 2. By using the ABC framework, ____________________ ____________________________________________ ____________________________________________ ____________________________________________ a. What _____________________________________ __________________________________________ b. Does ______________________________________ __________________________________________ c. Does ___________________________________ __________________________________________ __________________________________________ __________________________________________ Cost Accounting - Chapter 4 Notes Page 4 d.d....
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Cost Ch 4 Notes - Blank - Chapter 4 Notes Activity- Based...

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