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Chapter 4

Across
• To assign the indirect cost to individual products or services, ________ the activity rate by the cost driver for each product or service.
________ includes all the actions that managers take to improve operations or reduce costs based on the ABC data.
A proactive approach to cost management that managers can use to determine what costs should be in order for the company to earn an acceptable profit across a products life cycle.
How many systems are used to tract the total cost of products and services
Machine Hours, Number of set ups, and Engineering and inspection are what?
Down
• An _______ rate is computed for each cost pool by dividing the total indirect cost assigned to the pool by the total quantity or amount of the cost driver.
One method that can be used to assign indirect costs to individual products or services based on their activity requirements
Total activity cost/total cost driver
• To calculate an activity proportion, _______ the cost driver of each individual product or service by the total quantity or amount of the cost driver.
_______ systems include measures that capture something other than the sheer volume of units produced or customers served.