#7 Flashcards
1
Q
Cost driver
A
A factor, such as machine-hours, beds accupied, computertime, flight-hours, that causes overhead cost.
2
Q
ABC system
A
Activity Based Costing is a two-stage costing method in which overhead costs are assigned to overhead cost pools and the costs in each pool are applied to products based on the amount of activities they require
3
Q
Choices behind design of ABC
A
Support top management, Establish cost pools, cost drivers, cost objects
