| 5-1 | Compute product costs under a traditional, volume-based product-costing system. |
| 5-2 | 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. |
| 5-3 | Explain the concept of cost levels, including unit-level, batch-level, product-sustaining-level, and facility-level costs. |
| 5-4 | Compute product costs under an activity-based costing system. |
| 5-5 | Explain why traditional, volume-based costing systems tend to distort product costs. |
| 5-6 | Explain three criteria for selecting cost drivers. |
| 5-7 | Discuss several key issues in activity-based costing, including data collection and storyboarding. |
| 5-8 | Explain the concepts of activity-based management and two-dimensional ABC. |
| 5-9 | Explain and execute a customer-profitability analysis. |
| 5-10 | Understand and discuss how activity-based costing is used in service-industry organizations. |
