Term
|
Definition
| Costing method that is designed to provide managers with cost information |
|
|
Term
|
Definition
| Any event that causes the consumption of overhead resources |
|
|
Term
|
Definition
| "bucket" in which costs are accumulated that relate to a single activity measure in the ABC system |
|
|
Term
|
Definition
| Allocation base in an activity-based costing system |
|
|
Term
|
Definition
| Simple counts of the number of times an activity occurs such as the number of bills sent to a customer |
|
|
Term
|
Definition
| Measure the amount of time required to perform an activity such as the time spent preparing individual bills for the customer |
|
|
Term
|
Definition
| Assigning functionally organized overhead costs derived from a companys general ledger to the activity cost pools |
|
|
Term
|
Definition
| Activity rates are used to apply overhead costs to products and customers |
|
|
Term
|
Definition
| Provides detail about costs and how they might adjust to changes in activity |
|
|
Term
| Activity Based Management |
|
Definition
| Focusing on activities to eliminate waste decrease processing time, and reduce defects |
|
|
Term
|
Definition
| A systematic approach to identifying the activities with the greatest room for improvement |
|
|
Term
|
Definition
| Reflects how easily the cost could be adjusted to changes in activity |
|
|
