What coling system refinement Describe three guidelines for such refinement Casting stem refinement O A is a process used to categorie various activity cost pools on the basis of the different types of conversar collocation bases, or diferent degrees of difficulty in determining cause and fedt for benceived relationships OB, men making changes to a simple costing that reduces the use of broad wverages for signing the cost of resources to contacts and provides better measurement of the consoladowed by different com obis o describes an event task or unit of work with a specified purpose Consistent with is more strategic locus, coring system refinement identites activities in all functions of the value chain Casting system med first calle costs of individual activities and then assigns costs to cost objects such as products and services on the basis of the mix of activities needed to produce each product or service OD. debes costing approach that uses broad averages for signing the cost of resources informy to cost objects when the individual products or services in fact, use the resources in non no ways Three guidelines for refinement include: OA. 1. Sut cost reduction targets in terms of reducing the cost per unit of a cost slocation base in different activity areas 2. Perform an analysis of the factors that cause costs to be inced (con divers) in order to identify opportunities for improving the way work is done 3. Evaluate whether particular nonvalue-added activities can be reduced or diminated OB. 1 Select the activities and cost allocation bases to use for allocating indirect costs to the products 2. Identify the indirect costs associated with each cost location base 3. Compute the rate per unit of each cost allocation base 1 Classily as many of the total costs as direct costs as is economically fosible 2. Expand the number of indirect contpools until each of these pools is more homogenous 3. Use the cause-and-effect criterion, when possible to identify the co-allocation base for each indirect cost pool - VOST du e-cost pool OD. 1. Identify the products that are the chosen cost objects 2. Identify the direct and indirect costs of the products. 3. Compute the total cost of the products by adding all direct and indirect costs assigned to the products Click to select your answer Type here to search o RE Search Textbook So