Study Plan: Activity Based Costing

Knowledge Targets

I can define the following terms as they relate to our unit:

Reasoning Targets

• I can explain the use of cost pools in activity based costing.
• I can analyze the product margin of a product when using activity based costing and plantwide allocation.
• I can understand the difference between plantwide rate, departmental rate, and activity based costing activity rate.
• I can analyze the customer margin of a product using activity based costing.

Skill Targets

• I can calculate activity rates for activity cost pools.
• I can calculate the product margin using a traditional costing system and activity based costing.
• I can allocate overhead using activity based costing activity rates.
• I can allocate overhead using plantwide rates and departmental rates.
• I can calculate the total cost of a department, job, product, or process using activity based costing.

Click ABC Costing study plan for a printable copy.