1 | Compute product costs under a traditional, volume-based product-costing system. |
2 | Explain how an activity-based costing system operates, including the use of a two-stage procedure for cost assignment, the identification of activity cost pools, and the selection of cost drivers. |
3 | Explain the concept of cost levels, including unit-level, batch-level, product sustaining- level, and facility-level costs. |
4 | Compute product costs under an activity-based costing system. |
5 | Explain why traditional, volume-based costing systems tend to distort product costs. |
6 | Explain three criteria for selecting cost drivers. |
7 | Discuss several key issues in activity-based costing, including data collection and storyboarding. |
8 | Explain the concepts of activity-based management and two-dimensional ABC. |
9 | Explain and execute a customer-profitability analysis. |
10 | Understand and discuss how activity-based costing is used in service-industry organizations. |
11 | List and explain eight important features of just-in-time inventory and production management systems (Appendix). |