Matching
Select from the list provided the term that best matches each of the following descriptions.
Premises:
New techniques designed to measure more accurately and control costs; developed in response to today's complex automated business environment.
Activities that support a specific product or product line, such as inventory holding costs.
Allocation process that uses a variety of cost drivers and initially assigns costs to cost centers.
Activities performed for the benefit of the production process as a whole.
Activities that are related to the production of groups of products, such as materials handling costs and setup costs.
The cost of goods that occur before goods are manufactured.
Cost centers organized around operating activities that have similar characteristics.
A pricing scheme in which managers first determine the price that customers are willing to pay and then seek to produce the product at a cost that will allow the company to earn an acceptable profit.
Costs that occur after goods are manufactured, such as sales commissions.
Activities that increase each time another unit of product is made.
Measures of volume, such as labor hours, machine hours, or quality of materials; have a strong correlation with unit-level overhead costs.
The use of direct labor hours or another measure of volume to allocate overhead costs to all of a company's products.
Measures of the use and consumption of activities that are used as allocation bases to improve the accuracy of allocations in automated businesses.
Responses:
Activity-based cost drivers
Activity centers
Activity-based costing
Batch-level activities
Company-wide allocation rate
Downstream costs
Facility-level activities
Product-level activities
Strategic cost management
Target pricing
Unit-level activities
Upstream costs
Volume-based cost drivers
Correct Answer:
Premises:
Responses:
New techniques designed to measure more accurately and control costs; developed in response to today's complex automated business environment.
Activities that support a specific product or product line, such as inventory holding costs.
Allocation process that uses a variety of cost drivers and initially assigns costs to cost centers.
Activities performed for the benefit of the production process as a whole.
Activities that are related to the production of groups of products, such as materials handling costs and setup costs.
The cost of goods that occur before goods are manufactured.
Cost centers organized around operating activities that have similar characteristics.
A pricing scheme in which managers first determine the price that customers are willing to pay and then seek to produce the product at a cost that will allow the company to earn an acceptable profit.
Costs that occur after goods are manufactured, such as sales commissions.
Activities that increase each time another unit of product is made.
Measures of volume, such as labor hours, machine hours, or quality of materials; have a strong correlation with unit-level overhead costs.
The use of direct labor hours or another measure of volume to allocate overhead costs to all of a company's products.
Measures of the use and consumption of activities that are used as allocation bases to improve the accuracy of allocations in automated businesses.
Premises:
New techniques designed to measure more accurately and control costs; developed in response to today's complex automated business environment.
Activities that support a specific product or product line, such as inventory holding costs.
Allocation process that uses a variety of cost drivers and initially assigns costs to cost centers.
Activities performed for the benefit of the production process as a whole.
Activities that are related to the production of groups of products, such as materials handling costs and setup costs.
The cost of goods that occur before goods are manufactured.
Cost centers organized around operating activities that have similar characteristics.
A pricing scheme in which managers first determine the price that customers are willing to pay and then seek to produce the product at a cost that will allow the company to earn an acceptable profit.
Costs that occur after goods are manufactured, such as sales commissions.
Activities that increase each time another unit of product is made.
Measures of volume, such as labor hours, machine hours, or quality of materials; have a strong correlation with unit-level overhead costs.
The use of direct labor hours or another measure of volume to allocate overhead costs to all of a company's products.
Measures of the use and consumption of activities that are used as allocation bases to improve the accuracy of allocations in automated businesses.
Responses:
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