Select the terms from the above list to complete the following sentences.

One common ___________ to a traditional or _______ ______ costing system is called an _________-_____ _______ (___) system. The single MOH cost pool is separated into different ________ ____ _____ distinguished from one another by their measure of benefits provided, or the _________ ____ ______. Benefits provided unequally to distinct types of outputs provide value added to customers, for which customers are willing to pay. This is the basic concept that guides the approach to cost reduction and control called ________-_______________(___). The management team identifies and eliminates ___-_____ ________ and its costs and reorganizes the _____-_____ ________ to minimize costs. There are four levels of activities in a cost hierarchy. From narrowest to broadest in scope they are ______, _____, _______ (or ________), and _________-___________ cost.
When a management team fails to develop a cost management system that reports faithfully the unequal benefits (and costs) of value-added activities there is a high risk of mispricing distinct types of outputs. If managers use ____-____ pricing, an overcosted output will be priced too high and an undercosted product will be priced too low relative to the economic value added. The result is preventable ______-_____________ of costs of the lower-priced by the higher-priced product.

activity-based costing system (ABC) batch activity cost pools activity cost driver non-value-added activity refinement activity-based management output peanut butter value-added activity cost plus cross-subsization product (or service) facility sustaining