1. What is a kaizen standard? Describe the kaizen and maintenance subcycles.
2. Explain how benchmarking can be used to improve activity performance.
3. In controlling non-value-added costs, explain how activity output measures (activity drivers) can induce behavior that is either beneficial or harmful. How can value-added standards be used to reduce the possibility of dysfunctional behavior?
4. What is the meaning of the activity volume vari- ance? Explain how the unused capacity variance is useful to managers.
5. Describe the value of activity-based customer costing.
6. Explain how activity-based costing can help a firm identify its true low-cost suppliers.