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need insert 1. One common_______ to a traditional or_______ costing system is calleda(n) _______. The single manufacturing overhead cost pool is separated into different_______ distinguished

need insert

1.

One common_______ to a traditional or_______ costing system is calleda(n) _______. The single manufacturing overhead cost pool is separated into different_______ distinguished from one another by their measure of benefitsprovided, or the_______. Benefits provided unequally to distinct types of outputs provide value added tocustomers, for which customers are willing to pay. This is the basic concept that guides the approach to cost reduction and control called_______.

2.

The management team identifies and eliminates_______ and its costs and reorganizes the_______ to minimize costs. There are four levels of activities in a cost hierarchy. From narrowest to broadest in scope they are_______, _______,_______, and_______ costs.

3.

When a management team fails to develop a cost management system that reports faithfully the unequal benefits(and costs) ofvalue-added activities, there is a high risk of mispricing distinct types of outputs. If managers use_______ pricing, an overcosted output will be priced too high and an undercosted product will be priced too low relative to the economic value added. The result is preventable of_______ costs of thelower-priced by thehigher-priced product.

activity-based costing system

batch

activity cost driver

activity cost pools

output

cross-subsidization

non-value-added activity

peanut butter

product(or service)

refinement

value-added activity

facility sustaining

activity-based management

cost plus

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