The process by which activity rates are used to apply costs to products and customers in activity-based costing.

Activities that are carried out to support customers, but that are not related to any specific product.

The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.

A measure of the amount of time required to perform an activity.

Activities that are performed each time a batch of goods is handled or processed, regardless of how many units are in the batch. The amount of resource consumed depends on the # of batches run rather than on the # of units in the batch.

A costing method based on activities that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore fixed as well as variable costs.

An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.

A simple count of the number of times an activity occurs.

A systematic approach to identifying the activities with the greatest potential for improvement.

Activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.

An event that causes the consumption of overhead resources in an organization.

Activities that are performed each time a unit is produced.