6. Describe the five steps required to implement activity-based costing.

7. What are some advantages of using an activity-based costing system?

8. What are some disadvantages of using an activity-based costing system?

10. Explain how to record the application of overhead to products using activity-based costing. 11. Describe the three steps required to implement activity-based management. 12. How does activity-based management differ from activity-based costing?

13. What is the difference between a value-added activity and a non-value-added activity? Provide two examples of nonvalue-added activities for each of the following:

1. Fast-food restaurant

2. Clothing store

3. College bookstore