Ch 17 definitions from HW accy

departmental OH rate method

uses more than one rate to allocate overhead costs to products

plant wide and departmental OH rate methods

use only volume based measures such as DLH to allocate OH costs to products

activity based costing

typically uses the most OH allocation rates

activity based costing

focuses on the costs of carrying out activities

which costing method assumes all products use OH costs in the same proportion?

plant wife OH rate method

what is not usually used in computing plantwide OH rates?

number of quality inspections

with ABC, OH costs should be traced to which cost object first and second

activity and then product

activity driver

measurement associated with an activity

cost pool

a group of costs that have the same activity drivers

cost object

anything to which costs will be assigned

activity

a task that causes a cost to be incurred