Dthe value of activity-based customer costing , Managerial Accounting

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Dthe value of activity-based customer costing

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.

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