Question: 1. What is activity based costing (ABC) and how does it differ from traditional costing? 2. What are cost drivers? Cost pools? 3. What is

1. What is activity based costing (ABC) and how does it differ from traditional costing? 2. What are cost drivers? Cost pools? 3. What is the advantage of ABC? Limitations? 4. When is ABC applicable? What is the role of cost drivers in ABC? 5. How is ABC applied to cost objects? 6. How can ABC be used to improve a firms profitability? 7. What is Activity Based Management? 8. What does ABM attempt at accomplish? 9. Can you determine costs using ABC and understand the difference between other methods of allocating overhead and direct costs. 10. Can you use ABC to determine the cost or margin of a product, process or customer? 11. Why are some costs not allocated to cost objects in an ABC system?

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