Match the items in the two columns below by entering the appropriate code letter in the space provided.
A. Pull approach
B. Cost driver
C. Facility-level activity
D. Unit-level activity
E. Activity-based costing
F. Just-in-time processing
G. Batch-level activity
H. Product-level activity
I. Non-value-added activity
J. Value-added activity
_____ 1. Allocates overhead to multiple activity cost pools, then assigns the activity cost pools to products.
_____ 2. An activity that has a direct cause-effect relationship with the resources consumed.
_____ 3. Increases the worth of a product or service to customers.
_____ 4. Should be eliminated or reduced.
_____ 5. Plant management.
_____ 6. Engineering changes.
_____ 7. Equipment setups.
_____ 8. Assembling.
_____ 9. Primary objective is to eliminate all manufacturing inventories.
_____ 10. Used to initiate manufacturing under JIT processing.
Correct Answer:
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2. B 7. G
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