Label the following steps as appropriate for ABC and for ABM. List them in the proper order starting with the ABC activities.

a. Calculate a cost-driver rate.

b.

c. Assign activity costs to goods and services.

Exercise 5.23 Steps in Activity-Based Costing and Activity-Based Management

(LO 1)

Score each activity as adding high or low value as perceived by the customer.

d. Identify opportunities to enhance value-added activities and to reduce or eliminate non-valueadded activities.

e. Identify and classify the activities related to the company’s goods and services.

Identify activities as value added or non-value added.

g. Estimate the cost of activities.

Describe the four steps of ABC and the three additional steps of ABM.

Exercise 5.24 ABC and ABM Steps

(LO 1)

jaar apraetn : an: ; ; Exercise 5.25 Loomis Distribution Company (LDC) is a distributor of soft drinks. It receives products from beverage man- _, ctivity Analysis ufacturers (e.g., Coca-Cola) and ships them to retail outlets (e.g., convenience stores and supermarkets). (LO 1)

Required The following activities and subactivities of LDC’s warehousing process (the receiving and shipping of goods) are not in logical order. Arrange them into a numbered, logical sequence (e.g., 1.0, 1.1,..., 2.0, VEEL heron)E