Chapter 4 Activity Bases Costing Hierarchy of Activities included these four activities: 1. 2. 3. 4. An event that causes the consumption of overhead resources. Anything for which cost data are desired. A "bucket in which costs are accumulated that relate to a single activity measure in an activity based costing system. A factor, such as machine-hours, beds occupied, computer time, flight hours, direct labor hours or direct labor cost, that causes overhead costs. What are the four steps in an activity based costing system? 1. 2. 3. 4. Give 5 examples of activities that might be used if a company were using an ABC system: 1. 2. 3. 4. 5