Activities that are performed each time a unit is produced.
Unit-level activities
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15
A simple count of the number of times an activity occurs.
Transaction driver
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boom
Lose 50 points!
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seesaw
Swap points!
Okay!
fairy
Take points!
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25
thief
Give points!
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15
The process by which activity rates are used to apply costs to products and customers in activity-based costing.
Second-stage allocation
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banana
Go to last place!
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fairy
Take points!
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25
gift
Win 20 points!
Okay!
banana
Go to last place!
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15
An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.
Activity measure
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seesaw
Swap points!
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rocket
Go to first place!
Okay!
shark
Other team loses 10 points!
Okay!
baam
Lose 10 points!
Oops!
15
A systematic approach to identifying the activities with the greatest potential for improvement.
Benchmarking
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15
Activities that are carried out to support customers, but that are not related to any specific product.
Customer-level activity
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lifesaver
Give 20 points!
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fairy
Take points!
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25
shark
Other team loses 25 points!
Okay!
thief
Give points!
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15
The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.
First-stage allocation
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15
An event that causes the consumption of overhead resources in an organization.
Activity
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A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.
Activity cost pool
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A measure of the amount of time required to perform an activity.
Duration driver
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15
Activities that relate to specific products that must be carried out regardless of how many units are produced and sold or batches run.
Product-level activities
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15
Activities that are performed each time a batch of goods is handled or processed, regardless of how many units are in the batch. The amount of resource consumed depends on the # of batches run rather than on the # of units in the batch.