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| Topic | Description |
|---|---|
| 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. |
