Managerial Accounting, - Chapter 3 - Activity Bases Costing

Hierarchy of Activities included these four activities:

1.___________________________________________

2.___________________________________________

3.___________________________________________

4.___________________________________________

___________________ An event that causes the consumption of overhead resources.

___________________ Anything for which cost data are desired.

___________________ A bucket in which costs are accumulated that relate to a single activity measure in an activity based costing system.

___________________ A factor, such as machine-hours, beds occupied, computer time, flight hours, direct labor hours or direct labor cost, that causes overhead costs.

What are the four steps in an activity based costing system?

1.___________________________________________

2.___________________________________________

3.___________________________________________

4.___________________________________________

Give 5 examples of activities that might be used if a company were using an ABC system:

1.___________________________________________

2.___________________________________________

3.___________________________________________

4.___________________________________________

5.___________________________________________