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14 Cards in this Set

  • Front
  • Back

ABC

Activity Based Costs

ABC definition

Assigns costs to product only if they are true costs of making this product, can be s&a might not include MOH

Unit level

Done everytime a unit is produced

Batch Level

Done everytime a batch is produced regardless of the # of units

Batch Level

Done everytime a batch is produced regardless of the # of units

Product level

Relate to a specific product regardless of the # of united produced or sold

Customer level

Relate to a specific customer, not a product

Customer level

Relate to a specific customer, not a product

Organization sustaining

Carried out no matter what we produce

Transaction driver

Count # of times a transaction occurs

Duration driver

Measure length of time to complete an activity

Activity based management (use of ABC)

Identifies activities that could cut waste, decrease time and defect

Activity based management (use of ABC)

Identifies activities that could cut waste, decrease time and defect

Benchmarking (use of ABC)

Use current # as a standard upon which to improve