Discuss stages of activity based costing

Discuss stages of activity based costing
What is the difference between a volume-based cost driver
and a non-volume-based cost driver?
2. Explain the statement that traditional costing systems use
volume-based allocation measures.
3. What are the potential negative consequences of a traditional volume-based costing system?
4. How does activity-based costing differ from traditional
costing systems?
5. What types of business might use activity-based costing?
6. Describe the two stages of activity-based costing.
7. Identify the categories (hierarchy) of activities in an
activity-based costing system for a manufacturing company.
8. How do the ABC categories (hierarchy) in a service company differ from those in a manufacturing company?
9. Why must costs be classified into different categories for
ABC? What is the basis for these categories?
10. Consider a construction company that builds semicustom
homes. Give an example of each of the following activities: facility level, product level, batch level, and unit level.
11. Consider a company that offers drivers’ education and
defensive driving courses. Give an example of each of the
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