CH 4

Question 1

Activity Cost Pool?

Answer 1

“Bucket” that costs related to a single “activity measure” are accumulated

Question 2

Activity Measure?

Answer 2

Allocation Base or measure of whatever causes costs in an activity cost pool

Question 3

Activity Rate?

Answer 3

Overhead rate in an activity-based costing system

Question 4

Unit-level activities?

Answer 4

activities that arise as a result of the total volume of goods and services that are produced

–> performed each time a unit is produced

Question 5

Costs of unit-level activities should be proportional to…

Answer 5

…number of units produced

Question 6

Batch-level Activities?

Answer 6

tasks that are performed each time a BATCH is processed

Question 7

Costs of Batch-level… depend on?

Answer 7

Number of BATCHES processed (not # of units produced)

Question 8

Product-level activities?

Answer 8

–> Relates to specific products
–> carried out REGARDLESS of how many batches/units are manufactured

Question 9

Facility-level activities?

Answer 9

–> carried out REGARDLESS of how many batches/units/products are manufactured/made