Complete the sentences given below. 1. 23 + include(s) product recalls, warranty costs, and legal fees. involves analyzing the functionality of a product to determine which functions add value to the customer and then finding ways to deliver those functions while meeting the target cost 3. Activities such as expediting an order or scheduling a production run are considered 4. When managers use activity-based costing data to improve operations or reduce costs it is called 5. In a volume-based cost system, the activities include research and development and product testing varies in direct relation to volume. allocation measures include the number of quality inspections and the number of design changes. 7. 8 This stage of ABC is assigning indirect costs to activity cost pools with the goal to create as few pools as possible: 9. Dividing the activity demands of each individual product by the total quantity of the cost driver results in a(n) 10 cost systems tend to undercost low-volume, customized, or complex products.