1. Summarize the concepts underlying activity-based costing in two sentences. 2. What steps are required to implement the two-stage activity-based costing model? 3. Define activity cost pool, activity cost driver, and cost per unit of activity 4. Name two possible activity cost driv LO2 LO2 LO2 for each of the following activities: maintenance, materials move- L02 ment, machine setup, inspection, materials purchases, and customer service. 5. What is the premise of activity-based costing for product costing purposes? 6. In what ways does ABC product costing differ from traditional product cost methods? 7. Explain why ABC often reveals that low-volume products are over-costed and high-volume products are LO2 LO3 L04 under-costed 8. How can ABC be used to improve customer profitability analysis? 9. Explain activity-based management and how it differs from activity-based costing. LO5 LO6