Chapter 18 Activity-Based Costing
After studying this chapter, you should be able to:
- Recognize the difference between traditional costing and activity-based costing.
- Identify the steps in the development of an activity-based costing system.
- Know how companies identify the activity cost pools used in activity-based costing.
- Know how companies identify and use cost drivers in activity-based costing.
- Understand the benefits and limitations of activity-based costing.
- Differentiate between value-added and non–value-added activities.
- Understand the value of using activity levels in activity-based costing.
- Apply activity-based costing to service industries.
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