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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.

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