ACTG 2020 Quiz: management acc book summary notes pt3
Document Summary
Cost pool by the measure of activity for the cost pool. In the second-stage: an activity rate is computed for each cost pool by dividing the costs assigned to the, activity-based management (abm) utilizes information from the abc system to target activities in need of process improvements. Benchmarking performance allocation, activity rates are used to apply costs to cost objects such as products and customers. [lo3, lo4] against world- class organizations or other high-performing divisions within the same organization can help identify activities most in need of improvement. Chapter 8 variable costing: a tool for management: variable and absorption costing are alternative methods of determining unit product, under variable costing, only those production costs that vary with output are treated as product costs. This includes direct materials; variable overhead; and, costs. Fixed manufacturing overhead is treated as a period cost and charged off against revenue as it is incurred, the same as selling and administrative expenses.
