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|Cost drivers and cost pools||Identification and selection of cost drivers and cost pools in an ABC system.|
|Activity analysis||Analyzing activities within an organization and determining their costs.|
|Overhead cost allocation||Allocation of overhead costs to specific activities using methods such as direct allocation, step-down allocation, and reciprocal allocation.|
|Cost hierarchy||Categorizing costs into different levels (output unit-level, batch-level, product-level, facility-level) based on the cost hierarchy.|
|Cost allocation and activity rates||Calculation of activity rates for cost allocation purposes and applying them to allocate costs.|
|Activity-based management||Using ABC for decision-making and performance measurement, analyzing the profitability of products, customers, or processes.|
|Implementation challenges||Discussing challenges faced during ABC system implementation, including resistance to change, data collection difficulties, etc.|
|Comparison with traditional costing methods||Comparing ABC with traditional costing methods like job costing and process costing, highlighting advantages and limitations.|